Free trade allows the more efficient use of resources which, in turn, raises both the productivity of the domestic workforce and the level of national income. Adam Smith cited comparative advantage.
There is a view that is sometimes expressed that inflation may come down more quickly than we expect, or even if it does not, and if the Bank’s forecasts are correct, inflation will be back inside the target range next year. Under such circumstances, is there not a case for ending the tightening cycle, or even to consider a cut in interest rates?