The chief economist of the Bank of England (BoE), Huw Pill, said on Friday that “we still think there is more to do about inflationary pressures“.
Additional comments
It is not for us to tell the markets how they should price assets.
We are trying to refocus our thinking and communication following the recent events in the UK.
The challenge consists of set policy in such a way that the economic slowdown is sufficient to ensure that inflation is consistent with the target and also to prevent an overshoot in the other direction.
Prices during the period of turbulence showed that the bank rate went too far in one direction.
We believe that the delay in the transmission of monetary policy to activity is approximately one year.
Our target is not on the real side of the economy, our target is 2% inflation.
We believe that the slowdown in the economy is necessary to contain domestic inflationary pressures.
We seek the balance to return to 2% inflation without generating unnecessary problems in the economy.
We need to raise bank rates and reduce the QT portfolio – the recent disruptions have not distracted us from the key objective.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
