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Why cutting interest rates makes no economic sense at this time – Ros Altmann

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29.01.2020

THERE is talk of the Bank of England deciding to reduce interest rates at its meeting this week. It is difficult to fathom the economic rationale for such a move.

Rates are already at emergency levels, having been stuck close to zero and well below inflation for over 10 years. The usual rationale for lowering rates is to revive growth during an economic slowdown, or to anticipate future weakness if leading indicators have weakened.

But the UK economy has been showing clear signs of recovery after pre-election weakness.

Pre-election fears have given way to positive economic indicators: With the emphatic Conservative general election victory, prior fears of a Marxist Labour government in charge of the economy and possible imminent No Deal Brexit have disappeared.

Why we need to scrap jargon to make pensions easier to understand - Ros Altmann

Those uncertainties had obviously held back spending and investment, but UK capital markets, economic indicators and house prices have recovered well

since mid-December.

Monetary policy should not be........

© Yorkshire Post