The UK could face stags, says former bank rate setterPublished at 14:53 Greenwich average time
Luke Mintz
Wan One Reporter
According to a former UK bank rate setter, the UK may be in an economical period of “stagflation.”
Jonathan Haskell, who was on the bank’s monetary policy committee until last summer, spoke to BBC Radio 4’s World at One.
Commenting on the interest rate cuts, Haskel said, “I’m scared to say that the forecast can be summarised in a single word, as the market was hoping for, — the governor didn’t want to use it, but that’s there. I think – it’s stagflation.
“The economy is in a difficult position. Last year’s bank’s forecast for the economy this year is slow growth, but inflation and interest rates will drop. But new forecasts, I’m afraid…and more Because of slow growth.
Haskell, a professor of economics at Imperial College London, said, “This is a male dog outlook and I’m worried it won’t be very pretty.”
The bull, a contraction of the terms stagnation and inflation, is used to indicate periods of high inflation and stagnant economic growth.
