Some Bank of England (BoE) officials argue that it is time to act in curbing higher inflationary growth with the UK reopening the economy. Others argue that more time is needed to assess risk and price increases tend to be temporary.
Following are comments from policymakers on inflation and the outlook for the central bank's bond -buying program and interest rates. The BoE will announce its next monetary policy decision on August 5 with a GDP growth forecast.
Andrew Bailey who is the governor of the BOE said that with the inflation rate rising then the BOE should re -evaluate all the facts leading to the stance that the increase in inflation is temporary.
Dave Ramsden, the deputy governor, said the BOE should consider tightening economic policy earlier than expected based on economic growth.
Michael Saunders, a member of the BOE, is of the view that if the activities and indicators of inflation are in line with economic development and the risk of inflation is reduced then the financial stimulus should be reduced from time to time.
Jon Cunliffe, a member of the BOE expressed a different view that market players cannot expect the reopening of the economy to go smoothly. There was pressure in supply and a surge in demand. Therefore, if this is not addressed then inflation will continue to rise.
Silvana Tenreyo, a member of the BOE, even warned that the lesson to be learned from the financial crisis is that reducing support for monetary policy can pose significant risks, especially in the job market.
