BoE's Jonathan Haskel argues for rates hold amid 'tight and impaired' labour market

Inflation will remain higher

Bank of England Monetary Policy Committee member Jonathan Haskel revealed he is likely to vote to hold rates at the current 5.25% level at the next meeting in August.

In the first speech following a six-week long silence from the Bank of England due to the UK snap election, Haskel argued higher inflation will stay for quite some time. Speaking at King's College London on Monday (8 July), he noted that despite "encouraging signs", with inflation falling back to the BoE's 2% target, this is likely to be temporary. He highlighted that the UK's wage-price system has been subject to a "sequence of enormous shocks over recent years", which contributed to a "tight and impaired" labour market. This will result in inflation staying above target for a while,...