An interest rate cut is “long overdue”, the Bank of England has been warned.
Governor Andrew Bailey and his Monetary Policy Committee’s role is to keep inflation no higher than two percent.
They seek to do this by adjusting interest rates accordingly, applying higher rates to bring down inflation.
But with inflation now at two percent, the IEA’s chair of the Shadow Monetary Policy Committee, Andrew Lilico, says it’s time to cut to rates.
Mr Lilico said: “Inflation is likely to undershoot the target by some margin over the next eighteen months. Unnecessarily tight policy will impede the economy just as new investment is needed to take best advantage of emerging new technologies. A rate cut is well overdue.”
