BoE MPC member Jonathan Haskel, in a speech, delivered a clear message about the UK’s interest rate policy. Addressing the possibility of cutting interest rates in the near future, Haskel’s response was a definitive “no.”
He substantiated this viewpoint by referring to the ongoing tightness in the labor market, a crucial factor in determining monetary policy.
Haskel noted that the labor market remains “historically tight”, and based on current trends, it would take “at least a year” to return to the average tightness levels seen before the pandemic.
Further emphasizing his stance, Haskel stated “rates will have to be held higher and longer than many seem to be expecting.”
