Daniel Mahoney, Head of Economic Research at the Centre for Policy Studies, said:
“Today’s rate increase is a welcome step in addressing the problems associated with an unprecedented period of rock-bottom interest rates. Years of ultra-loose monetary policy have held back UK productivity by encouraging a misallocation of resources, sustaining zombie firms and helping inflate house prices beyond the reach of first-time buyers.
“Of course, this is just a small step. It is important that monetary policy is normalised at the earliest opportunity, not least because this very modest increase in rates still leaves little room for the Bank of England to respond to any future economic shocks.”
- Daniel Mahoney is Deputy Director and Head of Economic Research at the Centre for Policy Studies. He is the author of Apocalypse Soon? The Danger of Further Loosening Monetary Policy.
- The Centre for Policy Studies was founded in 1974 by Margaret Thatcher and Keith Joseph, and develops and promotes policies to encourage enterprise and enable the institutions of a free society to flourish.
Deputy Director and Head of Economic Research
0207 222 4488
Date Added: Thursday 2nd November 2017