Economic news

High inflation is bad for UK productivity – BoE’s Mann

2022.09.01 18:22

High inflation is bad for UK productivity - BoE's Mann
FILE PHOTO: The Bank of England (BoE) building is reflected in a sign, London, Britain, December 16, 2021. REUTERS/Toby Melville

LONDON (Reuters) – Britain’s very high inflation risks distracting businesses from the longer-term decisions needed to boost ailing productivity, Bank of England policymaker Catherine Mann said in a podcast released on Thursday.

Mann repeatedly called for half-point increases in the BoE’s main interest rate before a majority of the Monetary Policy Committee backed one last month, when official data showed consumer price inflation had hit a 40-year high of 10.1%.

Speaking with academics about Britain’s productivity – which lags the United States, Germany and France in output per hour worked – Mann said the current surge in inflation would force businesses to focus on short-term pricing decisions instead.

“Very high inflation, which of course we are experiencing right now, has many downside consequences,” she said.

“In a high-inflation environment, firms are scrambling to figure out what their best pricing strategy is. Productivity, on the other hand, comes when firms are focusing their attention on their products, their people, their investment choices and their global and domestic market opportunities,” she added.

The BoE will release its next interest rate decision on Sept. 15, when financial markets expect the central bank to raise interest rates to 2.25% from 1.75%.

Mann was speaking on a podcast produced as part of a series by The Productivity Institute, an academic forum funded by Britain’s Economic and Social Research Council.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,167.30 3.99%
ethereum
Ethereum (ETH) $ 3,496.71 2.68%
tether
Tether (USDT) $ 0.999808 0.03%
xrp
XRP (XRP) $ 2.29 1.71%
bnb
BNB (BNB) $ 703.72 1.99%
solana
Solana (SOL) $ 198.53 3.22%
dogecoin
Dogecoin (DOGE) $ 0.332649 3.33%
usd-coin
USDC (USDC) $ 1.00 0.03%
staked-ether
Lido Staked Ether (STETH) $ 3,492.30 2.83%
cardano
Cardano (ADA) $ 0.92059 2.06%
tron
TRON (TRX) $ 0.256589 1.87%
avalanche-2
Avalanche (AVAX) $ 41.09 5.63%
chainlink
Chainlink (LINK) $ 24.93 4.09%
the-open-network
Toncoin (TON) $ 5.90 4.88%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,159.63 3.12%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 3.74%
sui
Sui (SUI) $ 4.55 0.86%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,798.20 3.75%
hedera-hashgraph
Hedera (HBAR) $ 0.311752 3.45%
stellar
Stellar (XLM) $ 0.386837 4.13%
polkadot
Polkadot (DOT) $ 7.43 2.33%
weth
WETH (WETH) $ 3,495.92 2.72%
hyperliquid
Hyperliquid (HYPE) $ 28.32 5.75%
bitcoin-cash
Bitcoin Cash (BCH) $ 464.27 1.10%
leo-token
LEO Token (LEO) $ 9.55 1.50%
uniswap
Uniswap (UNI) $ 14.13 1.84%
litecoin
Litecoin (LTC) $ 108.36 1.65%
pepe
Pepe (PEPE) $ 0.000019 3.43%
bitget-token
Bitget Token (BGB) $ 5.29 10.89%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,691.36 2.90%
near
NEAR Protocol (NEAR) $ 5.53 1.06%
ethena-usde
Ethena USDe (USDE) $ 0.999408 0.06%
aave
Aave (AAVE) $ 383.15 2.59%
internet-computer
Internet Computer (ICP) $ 11.34 5.43%
aptos
Aptos (APT) $ 9.69 3.04%
usds
USDS (USDS) $ 0.997583 0.36%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.519546 2.88%
crypto-com-chain
Cronos (CRO) $ 0.16027 0.34%
vechain
VeChain (VET) $ 0.052384 8.61%
mantle
Mantle (MNT) $ 1.26 5.32%
ethereum-classic
Ethereum Classic (ETC) $ 27.60 1.55%
render-token
Render (RENDER) $ 7.71 0.65%
bittensor
Bittensor (TAO) $ 500.68 0.91%
monero
Monero (XMR) $ 198.39 4.98%
whitebit
WhiteBIT Coin (WBT) $ 24.90 1.97%
mantra-dao
MANTRA (OM) $ 3.74 0.74%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.36 1.05%
dai
Dai (DAI) $ 1.00 0.03%
arbitrum
Arbitrum (ARB) $ 0.805677 1.12%
filecoin
Filecoin (FIL) $ 5.35 2.73%