The Adam Smith Institute Responds to the Bank of England’s Decision to Hold Interest Rates

Commenting on the Bank of England’s decision to hold interest rates, Mitchell Palmer, economist of the Adam Smith Institute, said:

“It is not a surprise that the Bank of England has decided to hold interest rates. The Bank is sending a clear warning that inflation isn’t yet under control.

Inflation is almost double where it should be; it is still very much a threat. Despite easing food and energy costs, policymakers clearly want more evidence that price pressures are genuinely subsiding before cutting. That makes fiscal discipline in the upcoming Budget even more vital.

The Chancellor must rein in spending and deliver a credible plan for public finances, it would help bring down inflation faster and encourage the Bank to begin reducing rates in the months ahead. Without that, high borrowing costs for households and businesses will persist.”

-ENDS-

Notes to editors:

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The Adam Smith Institute is one of the world’s leading think tanks. It was ranked first in the world among independent think tanks and as the best domestic and international economic policy think tank in the UK by the University of Pennsylvania. Independent, non-profit and non-partisan, the Institute is at the forefront of making the case for free markets and a free society, through education, research, publishing, and media outreach.

This Press Release was released on the 6th of November.