BoE's Vlieghe says economy may need more help even with swift rebound



© Reuters. FILE PHOTO: FILE PHOTO: A view of The Bank of England and the City of London financial district in London, Britain

LONDON (Reuters) – Bank of England rate-setter Jan Vlieghe hinted in an interview published on Monday that Britain’s economy would need more help to restore it to its pre-pandemic path even if prices rise this year.

“To my mind, seeing some strength this year, which I do expect, is not going to be nearly enough to then conclude this is an economy that doesn’t need monetary help anymore,” Vlieghe told TheBusinessDesk.com, a regional business news website.

“My main message is don’t think of the Bank Rate being linked to short-term growth in the economy, as that’s not enough,” he said.

Vlieghe said the aim should not be a few quarters of fast economic growth but to help the economy recover “all the way” to its medium-term potential – or returning the labour market to its pre-pandemic state.

“Just because we’re going to have a couple of quarters of growth rates that may be unprecedented doesn’t mean the Bank of England should change its monetary stance and step on the brakes because everything is ‘great now’,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  EU and South American bloc reach trade deal

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here