Economy and macroUpdated 15h ago

Niesr says timid hike risks prolonging above-target inflation.

The National Institute of Economic and Social Research, known as Niesr, called last week’s Bank of England rate increase timid. Its concern is about the knock-on effect: the hesitant response risks keeping interest rates higher for longer. Niesr also said the increase was likely to leave inflation above the Bank’s 2% target until at least 2030. So the criticism is about more than whether the Bank moved; Niesr says the way it moved could mean the inflation target stays out of reach for years.

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