Economic Growth: Interest Rates
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of levels of interest rates on economic growth over the next 12 months.
Answered by Torsten Bell
Low and stable inflation is essential for long-term economic growth and sustained increases in living standards. It reduces uncertainty and eases costs for businesses and consumers, allowing them to make long-term planning and investment decisions.
The independent Monetary Policy Committee has the government’s full support as it acts to return inflation to the 2% target sustainably.
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