BoE Deputy Governor Broadbent predicts consecutive quarters of rapid growth – Telegraph

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Bank of England Deputy Governor Ben Broadbent attends a Bank of England press conference in the City of London, Great Britain on November 1, 2018. Kirsty O’Connor / Pool via REUTERS

Bank of England Deputy Governor Ben Broadbent predicted consecutive quarters of rapid growth, but also warned that inflation would prove to be less predictable, according to an interview with the Telegraph newspaper.

It may be too early to call a “roaring twenties” scenario, but it certainly means “very rapid growth at least over the next two quarters”, especially as the economy will be boosted by people who just save less, Broadbent said in remarks released Saturday. evening in the Telegraph newspaper.

Broadbent said in the interview that there has been “less disinflationary effect” as households have shifted their spending to other areas as well.

“The price increases for those who reach capacity limits are going to be more important than the price cuts for those who see a decrease in demand,” he told the newspaper.

“When you get the change in demand, you are going to run into bottlenecks in some areas, especially in those where supply has also been affected for a particular reason,” he added.

Broadbent said there was room for more quantitative easing if needed, but added that “the toolbox” was less important than “the main question of what you want to do with the policy direction. monetary”.

The Bank of England said last month that Britain’s economic recovery was accelerating thanks to the speed of COVID-19 vaccinations, but its policymakers were divided over the prospects for long-term improvement. Read more

Broadbent said in February that the Bank of England would need significant news to change the pace of its UK government bond purchases, which were part of its response to the COVID-19 pandemic.

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