Interest rates cut a relief, but they never should have been so high for so long
NEF responds to Bank of England's decision to cut interest rates to 4.75%
07 November 2024
Responding to the Bank of England’s decision to cut interest rates to 4.75%, Hannah Peaker, director of policy at the New Economics Foundation, said:
“It’s a relief that the Bank of England has finally cut interest rates — but they never should have been so high for so long and we need to address the severe consequences impacting people and businesses as a result.
“High interest rates weren’t responsible for cutting inflation, which was largely determined by international factors outside the Bank’s control. They have however driven people into mortgage arrears and made it more expensive for our government and businesses to make vital investments, including in things like fighting the climate crisis.
“To boost the economy and protect our quality of life, the Bank should keep interest rates down and take inspiration from Japan and China by introducing a special lower interest rate for vital carbon busting investments that will keep our energy bills down in the future.”
ENDS
Contact
James Rush – james.rush@neweconomics.org
Notes
The New Economics Foundation is a charitable think tank. We are wholly independent of political parties and committed to being transparent about how we are funded.
