The Monetary Policy Committee (MPC) of the Bank of England meets this week to vote on interest rates. It is widely expected that the MPC will keep Bank Rate at 5.25% and will keep it at this for at least several months. The Bank’s Governor Andrew Bailey has said that it is far too early to talk about lowering interest rates. Bailey is wrong.
While inflation is still over double the Bank’s target, the Bank’s cautious approach might seem the right one. However, the MPC is in fact being overly cautious and needs to take the bold step of cutting interest rates, starting this week.
