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BoE policymaker Haskel fires hawkish rates warning

Published 08/07/2024, 13:42
© Reuters.  BoE policymaker Haskel fires hawkish rates warning

Proactive Investors - Monetary Policy Committee member Jonathan Haskel delivered some hawkish comments on inflation and interest rates during a Monday speech at King’s College London.

"The labour market continues to be tight, and I worry it is still impaired," Haskel warned.

He added: "I would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably”.

His comments come on the same day that a new survey conducted by the Recruitment and Employment Confederation suggested that starting salaries for new permanent roles are increasing at the fastest rate since last October.

Haskel joined six other MPC members in voting to maintain the bank rate at 5.25% in June, while two other members voted to reduce the rate to a flat 5%.

The net vote is scheduled for 21 August.

Haskel also denied that the BoE was behind the curve in tempering the post-pandemic inflation surge.

“The initial burst of inflation was due to the economy being hit by a succession of external shocks, unforeseen by even the most informed market participants,” he stated.

Read more on Proactive Investors UK

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