BoE’s Haskel: Sees tension with government fiscal policy

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Reuters reported that the Bank of England (BoE) policymaker Jonathan Haskel said the central bank was in a difficult position as the government’s expansionary fiscal policy appeared to place it at odds with the BoE’s efforts to cool inflation.

“We are in a difficult, uncomfortable position, frankly, because I don’t like being in a situation where you have one institution – namely the independent central bank – at least being portrayed as set against another institution, the elected government,” he said.

“Having a fiscal expansion in the context of tight supply is, I’m afraid, very difficult,” he added, during a panel discussion hosted by the North Western Reform Synagogue.

Meanwhile, GBP remains pressured following the BoE surprising with just a 50bps rate hike instead of a 75bps increase. GBP/USD is back to flat at 1.1258 following a move between 1.1364 and 1.1211 on the day.

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