Press Story

Reacting to today’s decision by the Bank of England’s Monetary Policy Committee to cut interest rates, Ashwin Kumar, director of research and policy at IPPR, said:

“With growth reducing in the past couple of months, fewer employees paying taxes and Trump’s tariffs increasing global trade frictions, the Bank of England’s rate cut from 4.25 to 4 per cent is welcome but not enough.

“The Bank has kept rates too high for too long. Inflation is expected to return to target, with risks to the economy and global growth over the next few years warranting a larger cut of 0.5 per cent.

"The government has other options to ease pressures on households immediately - even as price increases are set to slow, essential costs remain high, and further action is needed to bring down the cost of living.

"One way to deliver swift support is by rebalancing energy bills – lowering electricity prices, helping with energy debts, and ensuring that households access the cheapest energy prices on offer."

ENDS

Professor Ashwin Kumar is available for interview

Ashwin is IPPR’s director of research and policy. A former chief economist at the Joseph Rowntree Foundation and senior government adviser, he is a regular commentator in national broadcast and print media.

CONTACT

Rosie Okumbe, digital and media officer: 07825 185421 r.okumbe@ippr.org

David Wastell, director of news and communications: 07921 403651 d.wastell@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