LONDON (Reuters) – Members of the Bank of England interest rate setting committee were speaking in parliament on Tuesday. They also supplied statements to the Treasury Committee. Below are some of their comments:
“Measures of domestically generated inflation are consistent with there still being some slack in the economy: they generally remain a little below levels consistent with the 2 percent target.
Growth - Employment - Sign - Round - Effects
“Despite continued robust growth in employment there is no sign of second round effects onto wages from higher recent inflation. Earnings growth has seen some pick up when comparing the latest three months on the previous 3 months, but year-on-year growth is little changed of late.
“Inflation expectations appear well anchored, despite the sharp rise in headline inflation, which is evidence of the ongoing credibility of the Bank’s inflation target and remit.”
Banks - Bank - England - Capital - Reason
“Compared to other central banks, the Bank of England has relatively low capital. One key reason why the balance sheet has increased so much since its pre-crisis level of 7 percent of GDP is because of monetary and financial stability interventions like QE.
“The issue medium-term will be, in terms of where the balance sheet ends up, is the extent to which commercial banks wish to hold highly liquid assets … wish to keep reserves at the Bank of England and the form they want to keep them in.”
Companies - Labor - Capital - Investment
“Companies are holding onto labor, it would seem, but there is not very much capital investment.”
“I see a real risk that as a result of the process of Brexit and the evolving uncertainties around it, business investment could turn out weaker than in the central forecast. If this were to happen then...
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