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Podcast: Beyond Currency
Episode: 1 March 2023 - Falling energy price may stoke inflation
Description: The Bank of England’s Chief Economist Huw Pill spoke yesterday of his belief that the Central Bank may consider slowing the pace of rate hikes in the coming months. He fears that there is a risk of the MPC having an adverse effect on the economy if it continues to hike rates at its current rate.
The Bank’s goal is to slow demand sufficiently to lower inflation without going so far that it leads to a contraction in growth. Given that short term interest rates are a blunt instrument with which to try to bring an element of cont...