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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 was right to cut interest rates today, but it has waited too long to do so. The Bank has been holding back the UK’s economic recovery by underappreciating the long-term effect of high interest rates. The UK is still 6 per cent below its pre pandemic growth path, behind the United States and the euro zone, and the Bank today confirmed that it expects growth to remain weak.

“With inflation expectations back at pre-pandemic levels, and the labour market cooling, now is the time for the Bank to signal clearly that it will continue the lowering interest rates in the coming months.”