The Bank of England would be able to do more to counter a projected rise in unemployment were it not for a sharp increase in inflation pressure caused by sterling’s fall since June’s Brexit vote, Deputy Governor Ben Broadbent said on Friday.
Broadbent highlighted the trade-off the BoE faces between keeping “significant” inflation pressures under control without hurting employment.
“The MPC (Monetary Policy Committee) would be less inclined to accommodate above-target inflation if it didn’t also expect demand to fall slightly short of that supply potential,” Broadbent said in a speech to the Society of Business Economists in London.
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