Liam Halligan has highlighted the ‘significant moment’ for the UK economy, as the Bank of England today announced a fall in inflation, from 6.9% to 6.8%.
The figures now mean the UK is now the best performing economy in G7 European nations, with only America and Canada performing better in the G7.
Speaking on Breakfast with Eamonn and Isabel, GB News’ Economics and Business Editor broke down the figures and the importance of a drop for the UK’s growth.
Halligan said: “This is a really significant moment, I think. I expected the number to go up today. Why? Because in August, we had oil spiking above $90.00 a barrel, up 30 odd percent in just a few months. Petrol and diesel prices rose at their fastest monthly rate in over 20 years by 7p and 8p respectively for the average litre of petrol and diesel. And yet we've got a reduction in inflation.
“As Tom says, it doesn't mean prices are coming down, but it doesn't mean that they're slowing. The increases are slowing significantly and all eyes now will be on the Bank of England tomorrow. The Monetary Policy Committee, they'll be deliberating today, There'll be an announcement tomorrow. Will we get the 15th successive interest rate rise from 5 and a quarter?
Halligan continued: “I do think they'll still raise rates because quite frankly, I don't think they've got the imagination not to at this point. And they were so slow in getting going with raising rates over a year or so that they're now overcompensating and damaging the economy more than they need to.
“The fact that inflation has come down, even if just by whisker, that's so symbolically important when almost everybody thought it would go up today, that will mean there should be, or at least I certainly hope there will be, a proper debate on the MPC. You could see a real split. That's five economists. It could be 5 to 4. There are 9 economists in all, including the Governor. It's a really close run decision now whether or not rates will rise tomorrow.”
Watch Liam’s analysis in full above.
Tune in to Breakfast with Eamonn and Isabel, Monday to Thursday from 6am, only on GB News.
