Interest rate cut “long overdue”, says IPPR

Reacting to today’s decision by the Bank of England’s Monetary Policy Committee Carsten Jung, senior economist at IPPR, said:

“The Bank of England should have cut interest rates today, it is long overdue. Economic growth has been close to zero and the labour market is cooling. Economic inactivity is higher than during the pandemic. The UK’s economy is a far cry away from the economic boom seen in the USA.

“High interest rates take a long time to filter through to economy, so the Bank needs to act sooner rather than later. In order to support the economy and provide certainty, the Bank should also signal more strongly its forward path for interest rate cuts.”