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Central Banks

UK Fiscal Stimulus Will Be ‘Difficult’ for BOE, Haskel Says

  • Bank of England policy maker sees era of big ‘trade offs’
  • Comments come a day before government details stimulus plan
A bronze cast of an infantry soldier stands opposite the Bank of England in London.

A bronze cast of an infantry soldier stands opposite the Bank of England in London.

Photographer: Simon Dawson/Bloomberg 

Updated on

The UK government’s plan to stimulate the economy raises “difficult” issues for the Bank of England as it tries to cut inflation from near its highest in 40 years, a member of the central bank’s policy-making panel said.

Jonathan Haskel, who sits on the BOE’s nine-member Monetary Policy Committee, indicated the economy has little capacity to absorb a big fiscal expansion from the Treasury because of tightness in supply chains and labor market.