Bank of England restricting growth by holding interest rates and refusing to end bond sales says IPPR

Responding to the latest MPC decision, William Ellis, senior economist at IPPR, said:  

“The Bank of England missed an opportunity today to cut rates and stop active gilt sales. This decision adds unnecessary strain to the economy, borrowing costs and the taxpayer.  

“Higher than expected inflation in December largely reflected statistical noise and temporary factors. With core inflation stable, the bigger picture is still one of easing price pressures, slower wage growth and rising unemployment – yet the Bank of England’s stance is restricting growth.

“The Bank also note that measures introduced by the government in the recent Budget will help to reduce inflation and hit the 2 per cent target a year earlier than originally expected. This should encourage the Bank to act more boldly and more quickly.”

ENDS

William Ellis is available for interview  

CONTACT        

Liam Evans, head of news and media, 07419 365 334 l.evans@ippr.org

NOTES TO EDITORS

IPPR is the UK’s most influential think tank, with alumni in Downing Street, the cabinet and parliament. We are the ideas factory behind many of the current government’s flagship policies, including changes to fiscal rules, the creation of a National Wealth Fund, GB Energy, devolution, and reforms to the NHS. IPPR is an independent charity which has seconded staff to government departments including DHSC and DESNZ to support ministers on crucial policies such as the 10-year health plan and the industrial strategy: www.ippr.org