Ward: Bank of England 'must raise rates'

clock

Henderson chief economist Simon Ward believes the Bank of England must stop ignoring strong UK inflation and raise interest rates.

The economist says Britain's inflation has taken off and this failure to address the problem could be dangerous, City Am reports. Ward believes the root cause of the rising inflation has been the development of an excess supply of money relative to the economy's demand to hold liquidity. "Most economists with monetarist leanings have dismissed the possibility of such an imbalance because of the slow pace of broad money supply expansion in 2008-09," Ward says. "The surplus, however, is the result not of an excessive rise in supply but rather a fall in demand: negative inflation-adju...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Square Mile's David Holder: Why now might be the time to invest in UK equities
UK

Square Mile's David Holder: Why now might be the time to invest in UK equities

'A re-rating could be on the cards'

David Holder
clock 11 July 2024 • 3 min read
BoE chief economist Huw Pill dents hopes for a rate cut due to 'persistent' inflation
UK

BoE chief economist Huw Pill dents hopes for a rate cut due to 'persistent' inflation

A case of 'when rather than if'

clock 11 July 2024 • 2 min read
UK economy beats expectation as it grows by 0.4% in May
UK

UK economy beats expectation as it grows by 0.4% in May

Boost for new Labour government

clock 11 July 2024 • 2 min read
Trustpilot