{"id":72512,"date":"2021-03-16T14:46:42","date_gmt":"2021-03-16T14:46:42","guid":{"rendered":"https:\/\/secondchargemortgageuk.com\/?p=72512"},"modified":"2021-03-16T14:46:44","modified_gmt":"2021-03-16T14:46:44","slug":"boe-governor-not-expecting-soaring-inflation","status":"publish","type":"post","link":"https:\/\/secondchargemortgageuk.com\/boe-governor-not-expecting-soaring-inflation\/","title":{"rendered":"BoE governor is not expecting soaring inflation despite pent-up demand"},"content":{"rendered":"\n

BoE governor has said he is more positive about the future of the economy but added the optimism comes \u201cwith a large dose of caution\u201d.<\/p>\n\n\n\n

Andrew Bailey told BBC Radio 4\u2019s Today programme that risks and uncertainty remain, including how much of the accumulated \u00a3180 billion unintentionally saved by high and middle-income households will be spent once restrictions ease.<\/p>\n\n\n\n

Some economists have warned that the pent-up demand could lead to high inflation, but Mr Bailey said the central bank does not expect inflation to hit suggested heights of between 4% and 5%.<\/p>\n\n\n\n

Instead, he believes it will return to around 2% in the next few months.<\/p>\n\n\n\n

I think there will be for many people more of a hybrid model of working at home and working in a place of work\u2026 I would be very surprised if we went back to exactly as we were before Covid<\/p>Andrew Bailey, Bank of England<\/cite><\/blockquote>\n\n\n\n

Mr Bailey also said he does not believe office workers will ever return to the pre-Covid five-days-a-week commute, with most employees working in a hybrid model.<\/p>\n\n\n\n

The governor said: \u201cI think we will see things change, because I think some habits and some practices will prove to be sustainable.<\/p>\n\n\n\n

\u201cI think there will be for many people more of a hybrid model of working at home and working in a place of work\u2026 I would be very surprised if we went back to exactly as we were before Covid.\u201d<\/p>\n\n\n\n

On the economy, he said: \u201cWe now have a more balanced picture of risks\u2026 The risks on the upside are that there has been a very large build-up in savings in the economy, largely because people have not been able to do the things they normally do.<\/p>\n\n\n\n

To find out more about how we can assist you with your Second Charge Mortgage please click here<\/a><\/em><\/p>\n\n\n\n

\u201cThe question of course then is: to what use will those savings be put and over what period of time? It could introduce more consumption and more demand into the economy.\u201d<\/p>\n\n\n\n

He pointed out that around 5% of savings could be spent over the next two years but \u201cit could be larger\u201d.<\/p>\n\n\n\n

It has affected the low paid more, because the sectors of the economy that have had a larger shutdown tend to have a greater concentration of low-paid workers<\/p>Andrew Bailey<\/cite><\/blockquote>\n\n\n\n

Mr Bailey said the effects of Covid have been very unequal, hitting the poorest hardest \u2013 with unemployment still expected to rise.<\/p>\n\n\n\n

He said: \u201cIt has affected the low paid more, because the sectors of the economy that have had a larger shutdown tend to have a greater concentration of low-paid workers.<\/p>\n\n\n\n

\u201cI would also add that there are more women in that section of the labour force. I think there is a greater ethnic proportion in that labour force (too).\u201d<\/p>\n\n\n\n

Any new Covid variants that require further restrictions and lockdowns would also knock the economy, he added.<\/p>\n\n\n\n

But the governor said the Bank of England was ready to use more \u201cfirepower\u201d if required, including the introduction of negative interest rates to encourage spending.<\/p>\n\n\n\n

Source: Shropshire Star<\/a><\/p>\n\n\n\n

Discover our Second Charge Mortgage Broker<\/a> services.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

BoE governor has said he is more positive about the future of the economy but added the optimism comes \u201cwith a large dose of caution\u201d. Andrew Bailey told BBC Radio 4\u2019s Today programme that risks and uncertainty remain, including how much of the accumulated \u00a3180 billion unintentionally saved by high and middle-income households will be […]<\/p>\n","protected":false},"author":1,"featured_media":72453,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1978],"tags":[2081,2128,2075],"yst_prominent_words":[748],"acf":[],"yoast_head":"\nBoE governor not expecting soaring inflation despite pent-up demand<\/title>\n<meta name=\"description\" content=\"BoE governor has said he is more positive about the future of the economy but added the optimism comes \u201cwith a large dose of caution\u201d.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, 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