BOE's Haskel: We remain open to the possibility that the economy might need further support

Author: Adam Button | Category: Central Banks

Comments from the Bank of England MPC member

Comments from the Bank of England MPC member
  • Must be ready to deploy, as and when needed, all the tools available to the MPC
  • We expect UK to return to pre-pandemic growth rates but will not make up for lost time and this, at least in the medium term, the level of economic output is permanently lower or 'scarred'
  • My views on the supply outlook are balanced
  • Likely that the majority of industries will return to the workplace when the pandemic restrictions are lifted, lessening the impact of structural change from this quarter
  • Vaccines and consumer spending are potential upside risks
  • Little risk of sustained upside inflation
Haskel is a dove and this fits with that. I just can't see the BOE loosening further though, not with 20 million Britons already vaccinated.

I do sympathize with his point that the transition away from government support is a considerable test for the economy. Everyone is watching and waiting for central banks to tighten but fiscal policy is the first round of tightening and the first challenge.

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