Latest News

BoE’s Bailey speaks to lawmakers about rate hike decision

0

© Reuters. FILE PHOTO: Governor of the Bank of England Andrew Bailey speaks during a news conference at Bank of England in London, Britain February 3, 2022. Dan Kitwood/Pool via REUTERS

LONDON (Reuters) – Bank of England Governor Andrew Bailey and other top officials from the British central bank spoke to lawmakers on Wednesday about their decision earlier this month to raise interest rates in response to rising inflation.

GOVERNOR ANDREW BAILEY ON INFLATION UNCERTAINTY

“It’s not just wage setting, it’s also price setting…it’s both. There is very clearly an upside risk there. The upside risk…comes through from the second-round effects.”

“The second-round effects are a real concern. If we get the second-round effects… of course we would need to react to that with higher interest rates… And the consequence of that, I have to point out, and I know I’m unpopular for saying these things, is that it would of course slow activity in the economy and it would increase unemployment”

BAILEY ON HIS CALL FOR RESTRAINT WITH PAY RISES

“I’m not saying people should not take pay rises. I did make the point earlier it was in the context of large pay rises.

My concern is the second-round effects. If everybody tries to get ahead of the shock that we’ve had from outside…then we’ll get the second-round effects and it will get worse.”

BAILEY ON MPC’S DIFFERENT VIEWS ON RATES

“It’s important not to put too much emphasis on…whether we took a different view on the level that we expected to get to as opposed to the pace by which we get there.”

MPC MEMBER JONATHAN HASKEL ON HIS VOTE FOR 0.75% BANK RATE

“I have to stress it’s a very uncertain situation and it’s a very, very finely balanced decision.”

BoE’s Bailey speaks to lawmakers about rate hike decision

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

UK in most challenging time for monetary policy since 1992: BoE’s Broadbent

Previous article

Sweden says SAS plan to raise cash needs ‘thorough analysis’

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News