Inflation below target

I think it is time for BoE to reduce the basic interest rate because for two months in a row, inflation has dropped blow the target. It signifies that not many people are willing to spend a lot of money nowdays due to the higher interest rates. I do agree with it. Things are getting more expensive if the interest rate is not going to go down in time. What might happen is that consumer will try not to spend a lot and businesses will suffer because people will resist buying anything. It will eventually hurt local economy. That is my theory.

I think what BoE needs to do is to evaluate the current interest rate and decrease the interest rate. That would do many people a good favour. What do you think?