Time for the Bank of England to change course
Julian Jessop quoted in The Telegraph and The Mail
Julian Jessop quoted in The Daily Express
Shadow Monetary Policy Committee featured in The Herald
The article said:
“The IEA, which describes itself as a ‘free market think tank’, said: ‘The shadow monetary policy committee…has concluded that the UK risks a recession caused by excessively high interest rates. A majority are now calling on the Bank [of England] to reverse course and cut the Bank Rate by 0.25 [percentage points] to 5 per cent.’
“The IEA made these comments just ahead of the Bank of England announcing on November 2 that its Monetary Policy Committee had voted to hold base rates at 5.25 per cent. They were at a record low of 0.1 per cent in December 2021. Trevor Williams, chairman of the IEA’s shadow monetary policy committee and former chief economist at Lloyds Bank, said on November 2: ‘There is mounting evidence that the UK’s monetary policy is too tight and could lead to price deflation in a few years and potential recession in the interim. The Bank of England should act now by lowering interest rates’.”
Read the full article on page 36 of The Herald (21/12/2023).
In its November meeting, the Shadow Monetary Policy Committee warned that the Bank of England were risking recession and even deflation if it did not cut interest rates. Find out more here.