- Analytics
- News and Tools
- Market News
- BoE’s Broadbent cites knock-on effects of the surge in prices to signal higher rates “for some time yet”
BoE’s Broadbent cites knock-on effects of the surge in prices to signal higher rates “for some time yet”
"The knock-on effects of the surge in prices - such as pressure on employers to push up wages, which has led to record growth in pay - were unlikely to fade away as rapidly as they emerged," said Bank of England (BoE) Deputy Governor Ben Broadbent while speaking at the annual Jackson Hole Symposium on Saturday per Reuters.
With this, the policymaker cites the need for monetary policy to remain in restrictive territory for some time yet.
BOE’s Broadbent highlights the evidence on spare capacity, and indicators of domestic inflation, as and when it comes through, as the catalysts for the British central bank’s stance on interest rates.
The policymaker signaled expectations of witnessing softer energy and core goods prices over the next few months but also warned about being cautious amid higher wages.
Additionally, BoE’s Broadbent cites the British economic shock as an illustration of how a sudden contraction in the supply of imported goods could hurt incomes and turn up the pressure on domestic inflation, chiefly via wage increases.
Also read: GBP/USD Weekly Forecast: Pound Sterling yields a range breakdown ahead of US Nonfarm Payrolls
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
