Central Banks
BOE Chief Economist Says UK May See ‘Positive Demand Shock’
- Huw Pill says low unemployment will support consumers spending
- Some signs wage growth and inflation are slowing as expected
A pedestrian looks in the window display of a discount shop in Croydon, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Bank of England Chief Economist Huw Pill said the UK could experience a “positive demand shock” as rock-bottom unemployment leaves workers with more to spend.
In a video conference hosted by Market News, Pill said that the tight labor market would be “supportive of consumption.” While this could help bolster the UK’s lackluster growth, it may cloud the picture for inflation which is still more than five times the bank’s 2% target.