The Bank of England’s chief economist, Howe Bell, said the British people need to accept that they are poorer.
- “Somehow in the UK someone needs to accept the fact that they are worse off and stop trying to conserve their real purchasing power by raising prices, whether it be higher wages or passing energy costs on to customers.”
Bell said some of the pressures keeping inflation high are likely to dissipate in the coming months
- Inflation could fall below the 2% target in two years
- “We have seen a series of inflationary shocks coming one after another,” he said. “Each of those shocks was temporary in itself, but they were timed in such a way that inflation never dissipated.”
- The risk that monetary policy is doing too much
- Inflation is making the UK as a whole worse off
Bell spoke on Tuesday, UK time.
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Bank of England Governor Bailey has come under attack for saying something similar:
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