The institute’s economics fellow, Julian Jessop, said: “Today’s better-than-expected UK inflation data show why forecasters and policymakers should pay more attention to monetary aggregates.
“Inflation was widely expected to jump due to higher fuel prices. In fact, it fell, which is consistent with the sharp deceleration in the growth of the money supply over the last year.
“The Bank of England should have hit the pause button on interest rates several meetings ago to assess the full impact of the tight squeeze that is already in place.
“Even if the MPC does decide to hike one more time this week, they should signal that rates are then on hold for a long period – and that the next move is just as likely to be a cut.”
That’s why we’re asking Express readers if Andrew Bailey is the right person to steer the country through this incredibly difficult period.
So what do YOU think? Is Andrew Bailey the governor our Bank of England needs right now? Vote in our poll above and join the debate in the comments below.
