Suren Thiru, Economics Director at ICAEW, responded to today’s interest rate decision by the Bank of England’s Monetary Policy Committee (Thursday 22 June 2023):
“The decision to significantly hike interest rates will be a bitter pill to swallow for households struggling with spiralling mortgage bills and businesses grappling with soaring operating costs.
“Raising interest rates will do little to address current inflation worries given the significant time lag between rate rises and its full impact on the real economy.
“With the majority of rate rises over the past year yet to filter through to borrowers and the broader economy, by continuing to tighten credit conditions, the Bank risks overcorrecting for past mistakes and unnecessarily risking recession.”
ENDS
Notes to editors:
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