BOE ‘Confronting’ Indirect Impact Of Energy Spike, Says Pill

Rising energy prices cause a third as much pain again for the UK economy through indirect effects as they do directly, according to a “rule of thumb” used by the Bank of England.

The central bank’s Chief Economist Huw Pill said it had become increasingly necessary for the BOE to “confront” the indirect effects of energy prices — meaning the consequences on manufactured goods and services — when the cost of gas and oil rocketed last year.