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13 November 2017

Bloomberg: Haldane says UK inflation to exceed target for next few years

The Bank of England chief economist said the UK inflation is likely to remain above the target for the next few years.

[...] Andy Haldane’s comments, in line with the BOE’s most recent forecasts, came in a blog post published on Monday describing his trip to Manchester on Nov. 3 , a day after the bank lifted interest rates to help curb price growth.

A report Tuesday is forecast by economists to show inflation accelerated to 3.1 percent in October, a level which will require BOE governor Mark Carney to write to the Chancellor of the Exchequer about how policy makers will respond. 

“Price rises across the whole economy are currently running well above the 2 percent inflation target and are expected to remain above-target for the next few years,” Haldane wrote.

He added that this was why the BOE tightened policy this month and that “small adjustments” to interest rates were “unlikely to have a significant impact” on the daily lives on most people he spoke to. [...]

Full piece on Bloomberg 

© Bloomberg

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