© Reuters. FILE PHOTO: A general view of the Bank of England building in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska/File Photo
LONDON (Reuters) – Bank of England interest rate-setter Jonathan Haskel said signs of a slowdown in Britain’s economy did not imply a need for less tightening of monetary policy and the central bank should “stand firm” against the risk of persistent inflation pressure.
A very tight labour market and Britain’s poor record on investment meant the economy was at risk of persistent inflation pressure, Haskel said in the text of a speech at the Bank of Israel which was published online.
“The concern for me is the risk that if price rises become embedded, monetary policy would have to be tighter for longer, prolonging a UK recession,” he said.
“I wish to avoid such an outcome. Therefore, right now, I believe it important for monetary policy to stand firm against the risk of persistent inflationary pressure.”