Interest rate rises not necessary, despite disappointing inflation data
“Despite the disappointing inflation data for September, the Bank of England should now be thinking about cutting interest rates, not raising them again.
“The bigger than expected fall back in August means that inflation is still lower than the Bank had been forecasting. Economic growth has been weaker too.
“A large drop is baked in for October. The reduction in the Ofgem cap on domestic energy bills will knock more than one percentage point off the headline rate this month.
“Above all, money and credit are now both shrinking, adding to the risks of recession and ensuring that inflation has a lot further to fall.”
Notes to Editors
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Writing for The Spectator in September, Julian explained why the decline in the growth of the money supply should drag the rate of inflation down over time.
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