Free Trial

MNI BRIEF: BOE MPC Haskel Would Act Forcefully If Need Be

Bank of England Monetary Policy Committee Jonathan Haskel restates the MPC's now ditched guidance, telling lawmakers he is ready to act "forcefully" if need be with inflation risks to the upside

(MNI) London

The Bank of England Monetary Policy Committee ditched its previous guidance that it would act forcefully if need be, but MPC member Jonathan Haskel in his written evidence to lawmakers on the Treasury Select Committee stuck to the previous wording, strongly suggesting that the decision to ditch it was not unanimous.

"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," he stated, while also revealing that although he backed a 50 basis point hike in December and February, he had considered a 75bps one at the earlier meeting. Haskel highlighted his continuing concerns, reflected in his reasearch, over the weakness of UK labour supply due to high levels of sickness feeding through to a falling participation rate.

Chief economist Huw Pill told the TSC that he now saw some signs of labour market weakness, but he too held the door open to further tightening, saying that there was no room for complacency and that inflation remained unacceptably high.

MNI London Bureau | +44 203-586-2223 |
MNI London Bureau | +44 203-586-2223 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.