As the Bank of England scrambles to unwind the disastrous effects of quantitative easing, the hidden costs of this policy are becoming clear, says Damian Pudner Quantitative easing (QE) has long been the Bank of England’s monetary policy nuclear option.
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The Bank of England's Monetary Policy Committee (MPC) uses interest rates to put a brake on the nation's spending.
Latest data from the Office for National Statistics ( ONS) showed regular earnings up 5.6% in the quarter, up from, 5.2% in the previous three months. In real terms, after taking inflation into account, that means regular pay growth rose 2.5%, the highest rate since the summer of 2001.
The Bank of England will cut interest rates four times this year to support a flat-lining economy, economists polled by Reuters said, but they added that risks to inflation are to the upside, suggesting policymakers may end up doing less.
Wage growth increased by 3.4% after taking into account inflation, driven by strong increases in the private sector.
Alan Taylor, the most recently appointed member of the Bank's monetary policy committee (MPC) said the UK is 'in the last half mile on inflation' and called for a pre-emptive cut
The Bank of England looks set to resume cutting interest rates next month after official data revealed weaker inflation and anaemic economic growth.
The fall in the headline rate of inflation from 2.6 percent to 2.5 percent was unexpected and positive news for the Chancellor Rachel Reeves.
Markets are significantly underestimating the chance that the Bank of England will have to step up the pace of cutting interest rates.
The Bank of England should move quickly to bring down interest rates given signs of a slowdown in Britain's economy, Alan Taylor, the BoE's most recently appointed interest rate setter, said on Wednesday.
Analysis: Milder inflation has brought hope that the Bank of England may lower interest rates, saving borrowers vast sums on loans and mortgages