Economics
UK Inflation Expert Warns BOE Should Halt Hikes Before Recession
- Congdon says BOE rates only need to rise “a little more”
- Veteran monetarist decries governor’s call for wage restraint
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The Bank of England should prepare to end interest-rate hikes before a likely recession early next year, according to Tim Congdon, the veteran UK monetarist who was an early prophet of the global inflation shock.
Citing a collapse in money-supply growth -- the metric whose spike in 2020 first led him to warn of a coming tide of surging prices -- he reckons officials should only stray “a little more” above the benchmark’s current level of 1%, and that an economic slump is already both probable and necessary.