Connect with us

Banking

BoE Deputy Governor Broadbent forecasts consecutive quarters of rapid growth – Telegraph

BoE Deputy Governor Broadbent forecasts consecutive quarters of rapid growth - Telegraph

(Reuters) – Bank of England Deputy Governor Ben Broadbent has forecast consecutive quarters of rapid growth but also warned that inflation will prove less predictable, according to an interview with the Telegraph newspaper.

It may be too soon to call a “roaring twenties” scenario, but it certainly means “very rapid growth at least over the next couple of quarters” particularly as the economy will be boosted by people simply saving less, Broadbent said in remarks published Saturday evening in the Telegraph https://bit.ly/3vmjAK1 newspaper.

Broadbent said in the interview that there has been “less of a disinflationary effect” as households have also switched spending into other areas.

“The price rises for those hitting capacity limits are going to be bigger than the falls in prices for those seeing falls in demand”, he told the newspaper.

“When you get the shift in demand, you’re going to run into bottlenecks in some areas, particularly in those areas where supply, too, has been hit for a particular reason”, he added.

Broadbent said there was room for more quantitative easing if needed, but added that “the tool box” was less important than “the primary question of what you want to do with the stance of monetary policy”.

The Bank of England said last month that Britain’s economic recovery was gathering pace thanks to the speed of COVID-19 vaccinations, but its policymakers were split over the prospects for longer-term improvement.

Broadbent said in February that the Bank of England would need significant news to alter the pace of its purchases of British government bonds, which were part of its response to the COVID-19 pandemic.

(Reporting by Kanishka Singh in Bengaluru; Editing by Leslie Adler)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Advertisement

Newsletters with Secrets & Analysis. Subscribe Now