The chief economist of the Bank of England (BoE), Huw Pill, said on Friday (6) that he expects a stagnation of the British economy in the second quarter of this year.
In an online session, the official characterized the UK’s economic prospects for the next 12 to 18 months as “weak”.
Pill echoed BoE Chairman Andrew Bailey’s comments that the institution is on “a narrow path” between the need to fight high inflation and the risks of a slowing economy.
According to him, in yesterday’s decision, three of the six leaders of the Monetary Policy Committee (MPC) disagreed with the 0.25 percentage point increase and preferred a 0.50 percentage point increase for fears that inflation get incorporated.
“The Committee as a whole is committed to returning inflation to the target”, he said.
The official also commented that “some degree” of additional monetary tightening may be necessary in the coming months, but preferred not to set a target for interest rates.
According to him, fluctuations in inflationary dynamics are guided by global developments in energy prices, not by domestic monetary policy.
Pill added that an aggressive adjustment to the base rate carries a lot of risks.
“We need to orient ourselves towards the medium term”, he commented.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
