Middle East Conflict Drives Inflationary Pressure in UK—Chancellor
In a letter outlining the annual mandate for the Bank of England’s Monetary Policy Committee, Healey told Governor Andrew Bailey that monetary policy remains essential to helping households and businesses by ensuring inflation returns sustainably to its 2% target over the medium term.
"Higher energy prices resulting from the conflict in the Middle East are putting upwards pressure on inflation," Healey wrote.
He acknowledged that the committee has primary responsibility for bringing inflation back to the target but noted that the government’s fiscal strategy also supports this objective by gradually reducing borrowing and helping to ease price pressures.
Healey stressed that maintaining low, stable inflation is crucial for sustained economic expansion and improved living standards. He added that price stability reduces uncertainty and helps lower costs for both consumers and businesses.
The chancellor also confirmed that the Bank of England’s Asset Purchase Facility would continue operating throughout the 2027-28 financial year and remain available for as long as necessary, consistent with the multiyear approach announced by policymakers on Sept. 17.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
