Tories are calling for the Bank of England to cut interest rates despite market gloom over new inflation data.
Analysts say the chances of a cut in June are now slim after inflation fell to 2.3 per cent in April from 3.2 per cent in March - the lowest level in nearly three years - but above the 1.9 per cent to 2.1 predicted by some analysts.
But Sir Jacob Rees-Mogg, the former Conservative business secretary, argued the Bank should have cut rates already because “inflation is a lagging indicator.”
Paul Scully, a former minister, said cutting the rate would “bring relief to many who are fixing their mortgages for the next few years”.
Paula Bejarano Carbo, NIESR economist, added said persistent core inflation and strong wage growth data suggested the Bank “may exert caution at its upcoming meeting and hold interest rates, despite today’s encouraging fall in the headline rate.”
Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said a June cut was now “unlikely”.
