BoE Chief Says Inflation Likely To Remain Persistent

RTTNews | vor 827 Tagen

(RTTNews) - Bank of England Governor Andrew Bailey said he is concerned about the continued persistence of inflation but forecast the rate to ease sharply this year.

At the Treasury Select Committee hearing, Bailey said policymakers are concerned about persistence of inflation. That is why the monetary policy committee raised the interest rate. Nonetheless, the governor said inflation will come down rapidly this year.

Last week, the BoE raised its benchmark rate by a half percentage point citing stronger-than-expected wage growth but softened its stance on future tightening. The bank rate was lifted to 4.00 percent, the highest since 2008.

In the monetary policy report, the bank said inflation is seen falling to around 4 percent towards the end of this year and to hit the 2 percent target sustainably in the medium term.

At the hearing, Jonathan Haskel, the external member of MPC said he noticed more persistent inflationary pressures and wished to act forcefully.

"Economic theory suggests that uncertainty around the persistence of inflation should be met with more forceful action, and so I shall remain alert to indications that inflation is more persistent than we expected, and act forcefully if necessary," Haskel added.

"Returning inflation to target in a sustainable manner requires that the MPC continues to be watchful for signs of greater persistence in inflationary pressures than is embodied in our baseline forecast," BoE Chief Economist Huw Pill said.

Tags: GBP

UK Economy Expands Most In A Year

The U.K. became the fastest growing economy in the G7 league as the country logged the biggest economic expansion in a year in the first quarter that exceeded expectations, thanks to a shift in trade activity ahead of the imposition of higher tariffs by the U.S. Gross domestic product expanded 0.7 percent sequentially, following a 0.1 percent growth in the previous quarter, the first estimate fr

RTTNews | vor 1 Tagen

UK Labor Market Cools Down In Q1

The UK unemployment rate edged up and wage growth softened in the first quarter ahead of the rise in payroll taxes, official data revealed on Tuesday. The unemployment rate rose to 4.5 percent in the three months to March, in line with expectations, from 4.4 percent in the three months to February, the Office for National Statistics reported.

RTTNews | vor 3 Tagen

UK Recruitment Activity Remains Weak In April

UK recruitment activity remained weak at the start of the second quarter as demand for staff deteriorated amid the rise in the salary inflation due to the increases in the national minimum and living wage rates, a report compiled by S&P Global showed Monday. Permanent staff appointments declined further amid reports of weak employer confidence and tighter hiring budgets.

RTTNews | vor 5 Tagen

Bank Of England Cuts Key Rate By 25 Bps Amid Trade Tariff Concerns

The Bank of England reduced its interest rate by a quarter-point on Thursday, as policymakers judged that higher trade tariffs warrant such action amid slowing inflation. In a three-way split, the Monetary Policy Committee, governed by Andrew Bailey, lowered the bank rate to 4.25 percent. This was the fourth such reduction since last August.

RTTNews | vor 8 Tagen

UK House Prices Rise For First Time In 3 Months

UK house prices rose moderately in April despite an end to the stamp duty holiday and worsening economic outlook, data published by mortgage lender Halifax revealed on Thursday. House prices climbed 0.3 percent on a monthly basis in April after falling for two straight months. On a yearly basis, growth in house prices accelerated to 3.2 percent from 2.9 percent in the previous month.

RTTNews | vor 8 Tagen

UK Construction Sector Continues To Shrink

The UK construction activity continued to contract in April as business uncertainty and concerns about economic outlook damped client demand, survey data from S&P Global showed on Wednesday. The construction Purchasing Managers' Index rose unexpectedly to 46.6 in April from 46.4 in March. This was the slowest decline in output levels for three months.

RTTNews | vor 9 Tagen

UK Car Sales Drop 10.4% In April As Higher Taxes Hurt - SMMT

New car registrations in the U.K. decreased in April mainly due to customers making purchases early to avoid higher taxes that came into effect at the start of the month, though electric car sales continued to increase, monthly data from the Society of Motor Manufacturers and Traders showed on Tuesday.

RTTNews | vor 10 Tagen

UK Mortgage Approvals Lowest In 8 Months

UK mortgage approvals decreased to the lowest level in eight months in March despite home buyers rushing to complete the transactions ahead of the rise in stamp duty, official data revealed on Thursday. Mortgage approvals decreased 800 to 64,309 in March, the Bank of England said. Approvals for house purchases, an indicator of future borrowing, decreased for the third straight month.

RTTNews | vor 15 Tagen

EURUSD	1.11549	GBPUSD	1.32809	AUDUSD	0.64069
USDJPY	145.873	USDCAD	1.39826	USDCHF	0.83882

Advertisement

BoE Chief Says Inflation Likely To Remain Persistent