BoE policymaker Jonathan Haskel said in a speech, “in the immediate term, the risk of a pre emptive monetary tightening curtailing the recovery continues to outweigh the risk of a temporary period of above target inflation. For the foreseeable future, in my view, tight policy isn’t the right policy.”
He also noted “two headwinds” over the coming months, the “highly transmissible Delta variant” and a “tightening of the fiscal stance”. “Against this backdrop, risk management considerations lean against a pre emptive tightening of monetary policy until we can be more sure the economy is recovering in a manner consistent with the sustained achievement of the inflation target,” he said.
