Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

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
GBP/USD
-
UK100
-

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

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.