The Bank of England must carry out a “long, slow process” of examining whether inflation has fallen rapidly enough before cutting interest rates, a member of its ratesetting committee has said.
Jonathan Haskel, an external member of the monetary policy committee, told the Financial Times that underlying measures of inflation remained too high.
“Although the fall in headline inflation is very good news, it is not informative about what we really care about. What we really care about is the persistent and the underlying inflation,” Haskel, who is also a professor of economics at Imperial College London, said.
He suggested that it would take some time for data to prove that underlying price pressures had cooled enough to bring headline inflation back to the
