• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Bank of England says omicron poses ‘two-sided’ risk to inflation outlook after shock rate hike

4 years ago
in Banking & Finance, Economy, highlights, Home, home-news, latest News
2 min read
0 0
0
71
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Bank of England says omicron poses ‘two-sided’ risk to inflation outlook after shock rate hike

The Bank of England is carefully assessing the risks posed by the omicron Covid-19 variant in light of its surprise decision to raise interest rates, its Chief Economist Huw Pill told CNBC on Friday.

The U.K.’s central bank raised its main interest rate to 0.25% from its historic low of 0.1% in the face of persistent inflation pressures and a tightening labor market, defying market expectations for it to wait until the new year before kickstarting its hiking cycle.

Inflation hit 5.1% in the 12 months to November, the sharpest annual incline for 10 years and well above the Bank’s 2% target. The BOE now expects consumer price increases to peak at an annual 6% in April 2022. Meanwhile, the British economy added 257,000 jobs in November despite vacancies remaining high, indicating a further squeeze on labor supply.

“Omicron has introduced a new level of uncertainty into our assessment of the economy as a whole, the inflation outlook and the labor market developments,” Pill told CNBC’s “Street Signs Europe.”

Pill — who also serves as the Bank’s executive director for monetary analysis and research — said the Bank now needs to proceed cautiously and assess whether omicron is going to lead to some reversal of the dynamics in the British economy over the past six months and beyond, particularly the tightening of the labor market.

“I think it is also important to keep in mind that that omicron-related risk is probably two-sided, at least as it is reflected in our core objective, our ambition in terms of the inflation outlook over the medium term,” he said.

RelatedPosts

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports

Nigeria Leads as Africa’s Wealthiest Economies Lose Over 8,000 Millionaires in 10 Years

Financial Stocks Gain as Accra Bourse Slips on Prime Index Decline

Read: Toyota goes electric

“We have some homework to do in seeing how the omicron variant impacts both public health and the developments in the U.K. economy, but also cautiously interpreting how those things influence what has to be the thing that we focus on, and the thing that we can best influence, which is the medium-term inflation outlook.”

Omicron is spreading at an alarming rate in the U.K., which saw almost 90,000 new Covid-19 cases on Thursday and recently implemented fresh social restrictions in a bid to contain the variant.

Despite the new threat, the Monetary Policy Committee opted for prudence on inflation over optionality on omicron outcomes, and will now have to hold a finger in the wind to assess whether to speed up its hiking cycle or keep policy relatively lose.

“While the Bank still expects inflation to get back to target in the medium term, action now maximises their chances of meeting their mandate in two to three years’ time,” said Jim Reid, global head of fundamental credit strategy and thematic research at Deutsche Bank, in a note.

“Indeed, inflation risks are mounting. Pay awards are already drifting up. Inflation expectations are also slowly moving. And the risk of further disruptions to global supply chains is on the rise, with the spread of Omicron threatening to temporarily derail the global recovery.”

Source: cnbc
Via: norvanreports
Tags: Bank of England says omicron poses ‘two-sided’ risk to inflation outlook after shock rate hikeomicron Covid-19 variantpersistent inflation pressures
No Result
View All Result

Highlights

Ghana in Talks With Nigeria Over Possible Barter Deal to Swap Gas for Electricity

Ghana set to Save $300m in Debt Restructuring Deal With IPPs – ACEP’s Ben Boakye Discloses

Morocco and Madagascar set up Historic CHAN Final in Nairobi

US Open: Defending Champions Swiatek and Sinner Cruise Into Second Round

Otto Addo Names Strong 24-Man Squad As Black Stars Prepare For Crucial World Cup Qualifiers Against Chad and Mali

FEC 2025: NRGI Warns Fossil Fuel Investments Risk Undermining Africa’s Energy Transition; Lists Innovative Financing Instruments to Plug Transition Funding Shortfall

Trending

Business

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports

August 27, 2025

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports The Importers and Exporters...

Nigeria Leads as Africa’s Wealthiest Economies Lose Over 8,000 Millionaires in 10 Years

August 27, 2025

Financial Stocks Gain as Accra Bourse Slips on Prime Index Decline

August 27, 2025

Ghana in Talks With Nigeria Over Possible Barter Deal to Swap Gas for Electricity

August 27, 2025

Ghana set to Save $300m in Debt Restructuring Deal With IPPs – ACEP’s Ben Boakye Discloses

August 27, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.