Bank of England should have fully stopped active gilt sales, says IPPR

Reacting to today’s decision by the Bank of England’s Monetary Policy Committee, Carsten Jung, associate director for economic policy at IPPR and former Bank of England economist, says:  

“The Bank was right to slow the unwinding of its economic support programme – quantitative tightening. It has added unnecessary pressure on gilt yields at a time of global pressures. The Bank should have in fact gone further and fully stopped active gilt sales, as these are not needed for its monetary policy strategy.

“Meanwhile, the expected inflation bump over the summer is projected to ease and the Bank of England should more strongly signal how it intends to lower rates over the coming months, given a range of factors pointing to weaker demand.”

ENDS

Ashwin Kumar, director of research and policy at IPPR, is available for interview

Ashwin was previously an economic advisor to Gordon Brown as well as the former senior economic advisor at the Department for Work and Pensions.  

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 dozens of 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