Bank of England (BoE) chief economist Huw Pill said he was confident the bank would be able to bring British inflation back to the 2% target over the medium term. In a virtual question and answer session, organized by the BoE, Pill highlighted that the measures adopted now by the bank should have an impact on prices in the future.
Even if energy prices quickly move towards inflation, the monetary tightening is likely to take some time to take effect, he said. “We can’t control prices right away,” Pill said.
In the economist’s assessment, wage growth is “quite fast” right now in the UK and a consistent improvement at that point would be an example of the BoE’s actions being successful.
Asked about the 2% target, Pill reaffirmed that anchoring in such a goal is essential amid escalating inflation. “Now is the time to bet on the 2%, not abandon it.”
Pill also reiterated the importance of the independence of the monetary institution and said that governments are subject to political and electoral pressures, while the central bank makes “difficult decisions”.
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.
