Opportunistic Monetary Policy: Why UK Interest Rates Are Often Constant For Long Periods And Why They Are Likely To Rise Soon

Royal Economic Society logoIn the fourth of a series of interviews from the Royal Economic Society annual conference 2007, Romesh Vaitilingam talks to Costas Milas about UK interest rates.

Listen to the interview


Monetary policy-makers do not make minor adjustments to interest rates when inflation is close to the inflation target – but they do respond vigorously when inflation begins to move further from the target. That is the central argument of new research by Professors Christopher Martin and Costas Milas, presented to the Royal Economic Society’s 2007 annual conference at the University of Warwick.

Read more about this research at the Economics in Action blog.

Find more papers by Christopher Martin and Costas Milas at EconPapers and search for more Internet resources on the topic of interest rates at Intute: Economics.