Government’s growth mission at odds with Bank of England’s approach to interest rates, warns New Economics Foundation
The government must invest more to build a more resilient economy, says thinktank
16 January 2025
Government’s growth mission at odds with Bank of England’s approach to interest rates, warns New Economics Foundation
The government must invest more to build a more resilient economy, says thinktank
Responding to the news that UK GDP has grown by 0.1%, Chaitanya Kumar, head of economic and environmental policy at the New Economics Foundation, said:
“Tiny changes in GDP offer little comfort to the millions of people that continue to struggle to afford life’s essentials. While the government’s singular focus on growth is clearly at odds with the Bank of England’s reluctance to cut interest rates quickly enough. This is making life harder for people and slowing down the economy.
“From the climate emergency to the energy crisis, the scale of the challenge facing the UK requires more coordination between the central bank and the government. The government must make greater investment to ensure our public services and local economies are resilient.”
ENDS
