Julian Jessop appears on BBC Newsnight

Julian Jessop, Chief Economist at the Institute of Economic Affairs has appeared on BBC Newsnight to discuss the Bank of England’s interest rate rise.

In the interview Julian argues that ultra low interest rates have their costs as well as their benefits. If you are in a position where interest rates are expected to remain near zero for the foreseeable future, that creates all sorts of distortions in the economy, mis-allocation of resources and so on. If you can get interest rates back to more normal levels over the next few years, and also have a bit of margin if you need to cut rates again for example if the Brexit negotiations don’t go well.

Watch the full interview here. Julian’s segment begins at 21:21