17 Jan 2014
BoE's Broadbent positive about UK recovery in 2014
Bank of England Monetary Policy Committee member Ben Broadbent said in a speech at the London School of Economics on Friday that the UK economy should recover further in 2014, seeing an acceleration in business investment and an increase in consumer spending.
After being hit by rising prices, tax increases and poor productivity, Britons' incomes should improve this year, as “there are signs these headwinds are beginning to abate,” Broadbent stated.
The BoE policymaker pointed to the drop in headline inflation to the central bank's 2% target and to the recent pickup in UK growth. The unemployment rate, currently at 7.4% could fall to the 7% threshold set by the BoE quicker than expected, possibly early this year, which would trigger a revision of policy.
Broadbent also commented on the strength of the pound saying that it reflects the sluggish recovery in the EU.
After being hit by rising prices, tax increases and poor productivity, Britons' incomes should improve this year, as “there are signs these headwinds are beginning to abate,” Broadbent stated.
The BoE policymaker pointed to the drop in headline inflation to the central bank's 2% target and to the recent pickup in UK growth. The unemployment rate, currently at 7.4% could fall to the 7% threshold set by the BoE quicker than expected, possibly early this year, which would trigger a revision of policy.
Broadbent also commented on the strength of the pound saying that it reflects the sluggish recovery in the EU.