That’s the end of the bank’s chief economist Andy Haldern
For the first time in nearly two years, inflation exceeded its target and pressured the Bank of England to raise interest rates.
Consumer price inflation (CPI) jumped from 1.5% in April to 2.1% in May as fuel, clothing and meal costs all spiked.
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The UK Central Bank, led by Andrew Bailey, faces increased pressure from city experts by easing quantitative easing measures and raising interest rates.
The bank’s goal is to keep inflation at 2%, but it was unable to do so in May due to the impact of the pandemic.
The Bank of England meeting of the Interest Rate Setting Monetary Policy Committee on June 24th will be closely monitored. In particular, the famous hawk warned of an increasing risk from inflation, as it was the last of the bank’s chief economist Andy Haldain.
Laith Khalaf, financial analyst at AJ Bell, comment:
“Inflation is rising and unemployment is falling, but the Bank of England is on raising interest rates until they are convinced that these are not just temporary factors arising from a red-to-green economy. So the market is monitoring the change in rhetoric rather than concrete action, especially following the latest shift in interest rate expectations from the US central bank. We have the good news. We are beginning to reach the topsy turby portion of the cycle that is bad news, because markets are worried that positive economic signals will speed up central bank liquidity withdrawals,” Caraf said. I stated.
“The upcoming meeting will be the last of Chief Economist Haldain before leaving the Bank of England after a 32-year career on Threadneedle Street. Haldane agrees to the MPC in a seven-year stint on the committee. He was a member based on the company, and voted for a 0.25% increase in June 2018, and opposed a number of decisions on interest rates once in June 2018. Just a month later, the MPC unanimously opposed the fees This was almost in a controversial position as I voted to raise it.”
“When Haldane said in 2016 he didn’t understand pensions, he wanted some controversy from the pitch, and his financial advisor also said there were no clues. Clearly, feather rafflers for a particular quarter. As many people pointed out at the time, Haldane enjoys the benefits of being a member of the public service definition benefits system. . However, he said that supply shortages in the housing market led to a boom in real estate prices, and also led to today’s gradual phenomenon, while also taking government policies designed to encourage and promote low interest rates and the House of Representatives. It was absolutely right to point out how it would lead to the phenomenon that was supported. purchase. ”
