Institutions: The Central Bank of the United Kingdom is in a dilemma, and rapid policy relaxation may affect the stability of the bond market.

robot
Abstract generation in progress

On February 6, Jin Shi Data News, Anthony Karaminas, Deputy Head of SEI's Global Fixed Income Advisory Business, said that the current "stagflation" situation in the UK (stagnant economy plus inflation higher than the target) presents a challenge to the UK's Central Bank because it needs to support economic activity while adhering to its clear inflation control task. Looking ahead, stubborn inflation may limit the ability of UK Central Bank Governor Bailey to further cut interest rates. If the Central Bank continues to quickly relax its policies, the UK government bond market may suffer from significantly increased term premiums and reputation losses. This will limit the government's space to boost the economy through expenditure when needed.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Share
Comment
0/400
RSO-15vip
· 02-06 06:52
Buy for earning 💎
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)