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Former chief economist admits BoE errors contributed to inflation surge

Published 05/09/2023, 08:36
Updated 05/09/2023, 08:40
© Reuters.  Former chief economist admits BoE errors contributed to inflation surge
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Proactive Investors - The Bank of England's former chief economist, Andy Haldane, admitted to Sky News that the institution made errors contributing to the UK's inflation surge.

He indicated that the Bank continued its quantitative easing programme for an extended period and was slow to raise interest rates during the Covid recovery phase.

Despite inflation decreasing from its 11.1% peak last October, the current rate of 6.8% up to July still burdens households amidst the living cost crisis.

Haldane, who resigned from the Bank in 2021 and now leads the Royal Society of Arts, speculated that the UK might face a recession.

In the interview, he also highlighted the country's insufficient infrastructure investment, referencing the recent classroom concrete issue.

Haldane stated that while the initial easing was necessary during Covid, its prolonged application and delayed rate hikes were regrettable decisions.

Read more on Proactive Investors UK

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