BoE Deputy Governor Jon Cunliffe told CNBC, “one shouldn’t expect the reopening of the economy to be smooth, this is not something that you can just close down and reopen without bumps in the way.” He admitted, “we’re seeing a surge in demand. We’re seeing some constrictions in supply that’s driving inflation.”
“Are these factors that the economy will then adjust, supply will recover and adjust, and demand after the initial burst will cool off, or is this something more persistent that will become embedded in people’s expectations?” he questioned. But he emphasized that BoC will try to analyze the situation as the economy returns tor normal.
