Commenting on the Bank of England’s unanimous decision to keep interest rates at 0.75%, Positive Money executive director Fran Boait said:
“The Bank of England bind continues into 2019, as the central bank wants to raise rates to build up ammunition for future downturns, but is constrained by uncertainty around Brexit and the resilience of the UK economy.
“In today’s low rate, low growth environment, the Bank of England cannot continue to rely on interest rates as its main mechanism for influencing demand in the UK economy. With potential economic shocks on the horizon, the Bank will need to consider new tools such as ‘helicopter money’ or overt monetary financing, which would inject spending power directly into the real economy.”
About Positive Money
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.
