FT alphaville on the "Catch 22" effect

Today the Bank of England has cut interest rates by 0.25 percent to 5 percent. In this FT Alphaville column, I discuss how the Catch-22 effect can contribute to the slow adjustment of service inflation. Given the other disinflationary forces at work, the Bank of England should not be afraid to let today’s rate cut begin a sustained easing cycle.

Here is the link to the article

https://on.ft.com/4flQBOl