Suren Thiru, Economics Director at ICAEW, responded to today’s interest rate decision by the Bank of England’s Monetary Policy Committee (Thursday 21 September 2023):
“The decision to keep interest rates on hold, while unexpected, is the right one given the current backdrop of economic uncertainty and will come as a relief for those people struggling with their mortgage bills.
“Hopefully this decision means the Bank of England is becoming more forward looking in setting interest rates rather than being fixated on backward-looking data, given the large time lag between rate rises and their full impact on households and businesses.
“With growing evidence that inflation is on a strong downward trajectory amid a flagging economy, the case for further interest rate hikes is diminishing fast.”
ENDS
Notes to editors:
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