Monetary Policy

“The Bank of England has to be careful”, says IEA fellow



Sam Collins writes in The Telegraph

Energy and Environment

Andy Mayer featured in City AM

Julian Jessop quoted in The Express and The Independent

IEA Economics Fellow Julian Jessop was quoted in The Daily Express discussing the Bank of England’s interest rate rise and how it should respond to continuing financial sector turmoil.

Julian said:

“We’ve seen in the UK how interest rates can do this. We saw last Autumn after the mini-budget with the pension fund crisis. This is a warning of the effects of interest rates rising.

“There are other ticking time bombs in the economy that haven’t gone off yet so the Bank of England has to be careful.”

Julian also expressed faith in the stability of UK banks:

“The balance sheets are there for everyone to see. You can see what bonds they own and so on. The main banks like HSBC and Barclays and so on make it clear what they are doing and they have to report what they will do if for example housing prices collapsed or interest rates rose.

“The medium-sized and large banks in the UK I wouldn’t be particularly worried about.”

The full article can be read here.

Julian also commented on the medium-term interest rate outlook in The Independent. Read the piece here.