The Bank of England is trying to reduce inflation without doing too much damage to the British economy, the bank’s chief economist Huw Pill said on Friday, a day after the British central bank sharply raised the costs of loans and warned of a long recession.
“What we’re looking to do, we’re always looking to do, is find the balance that gets us back to our 2% inflation target without creating unnecessary and costly problems on the real side of the economy,” Pill told broadcaster CNBC.
“Creating that balance, signaling that balance, was really our main message yesterday.”
On Thursday, the Bank of England raised its benchmark rate by 75 basis points to 3.0%, seeking to counter the risks of an inflation rate above 10%.
The central bank also warned investors that the risk of the UK’s longest recession in at least a century means borrowing costs are likely to rise less than expected.
Pill echoed the British central bank’s message that rates should rise, but investors’ bets on how much the bank rate should rise during the recent period of political and market turmoil in the UK went “a little too far in one direction.” ”.
After being forced into emergency action to support the gilt market, Pill said the Bank of England was now trying to re-orient the economy out of the cost-of-living crisis caused by high inflation that is at more than 10%. .
The task of keeping inflation in check must be painful, Pill said.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
