The UK’s central bank will need to be flexible on setting interest rates as inflation spikes but the country’s economy slows, according to a senior official on the committee that sets monetary policy
The bank's chief economist also explains its comments on Thursday that it would"forcefully" attack inflation..
"The statement that we put out collectively is one that I think had a certain level of flexibility because it had to encompass those different views," the Bank of England’s chief economist Huw Pill told Bloomberg TV on Friday.will hit 11% by Autumn in a squeeze on households not seen since the 1970s.
"But at the same time, I think what we were trying to emphasise is that that flexibility also applies to what the decisions are. I don't think it's all about August. We talked about the pace, timing and scale of future decisions."AdvertisementRaising interest rates too fast could cause the economy to further slow, but not raising them fast enough could lead to faster inflation and higher costs.
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