{"id":72685,"date":"2021-07-01T14:28:51","date_gmt":"2021-07-01T14:28:51","guid":{"rendered":"https:\/\/secondchargemortgageuk.com\/?p=72685"},"modified":"2021-07-01T14:28:52","modified_gmt":"2021-07-01T14:28:52","slug":"bank-of-englands-haldane-inflation","status":"publish","type":"post","link":"https:\/\/secondchargemortgageuk.com\/bank-of-englands-haldane-inflation\/","title":{"rendered":"BoE’s Haldane warns inflation headed towards 4 per cent"},"content":{"rendered":"\n
Andrew Haldane warned in his last speech as the Bank of England’s chief economist that policymakers risked losing control of inflation.<\/p>\n\n\n\n
At an event hosted by the Institute for Government, Haldane said that UK consumer price inflation was headed towards 4% by the end of 2021 and that everyone would lose should inflation expectations became unhinged as a result.<\/p>\n\n\n\n
Bank would be forced to play catch-up, hiking interest rates “materially” higher “and\/or faster” in order to reanchor people’s expectations.<\/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 “If this risk were to be realized, everyone would lose — central banks with missed mandates needing to execute an economic hand-brake turn, businesses and households facing a higher cost of borrowing and living, and governments facing rising debt-servicing costs,” he said in prepared remarks for the speech.<\/p>\n\n\n\n For now, there was no evidence that expectations had become unhinged, he added, but said that the recovery was changing the economy rapidly which could mean that rate-setters would have to shift their stance quickly.<\/p>\n\n\n\n “We\u2019re moving from a regime of rather localized shortages and price pressure to a world of slightly more generalized shortages and generalized price pressures – from pockets of excess demand to aggregate excess demand,” he added.<\/p>\n\n\n\n Quick action was needed because “getting the cat back in the bag is jolly hard work.”<\/p>\n\n\n\n By Alexander Bueso<\/em><\/p>\n\n\n\n Source: ShareCast<\/a><\/p>\n\n\n\n