Interest rate standstill
15 December 2023
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Press Release
15 December 2023
In the Media
Education
Julian Jessop writes for The Telegraph
IEA Economics Fellow Julian Jessop has written for The Telegraph, highlighting what the results will be of the BoE’s Monetary Policy Committee’s decision to keep the base interest rate at 5.25pc, once again.
Julian wrote:
“The remit does allow for some flexibility in response to temporary shocks, if the economic or financial costs of bringing inflation rapidly back to target would be too high. But the essential point is that the MPC’s job is to worry about inflation, not growth, and inflation is far too high.
“Unfortunately, the MPC currently lacks the confidence or the credibility to cut interest rates until it is certain that inflation is back under control. By then, it may be too late to prevent a prolonged slump.”
Read Julian’s full piece here.
Julian wrote:
“The remit does allow for some flexibility in response to temporary shocks, if the economic or financial costs of bringing inflation rapidly back to target would be too high. But the essential point is that the MPC’s job is to worry about inflation, not growth, and inflation is far too high.
“Unfortunately, the MPC currently lacks the confidence or the credibility to cut interest rates until it is certain that inflation is back under control. By then, it may be too late to prevent a prolonged slump.”
Read Julian’s full piece here.
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