Monetary Policy

Striking the Right Balance on Interest Rates

Julian Jessop quoted in City AM

IEA Economics Fellow Julian Jessop has been quoted in City AM explaining what a ‘good level’ of interest rates might look like in the long-term as inflation begins to ease.

Julian said:

“Four per cent would be a good level for interest rates in the longer term, broadly consistent with two per cent inflation and two per cent growth in the real economy.

“Anything much lower than this would be a worrying sign that the UK is at risk of Japanese-style stagnation. Anything much higher would suggest that inflation is a bigger problem.”

Read the full article here.

Julian’s comments were also quoted in Property Industry Eye.