Participating in a panel dialogue at the annual convention of the American Economics Association in New Orleans over the weekend, Bank of England (BoE) Monetary Policy Committee (MPC) member Catherine Mann spoke about the strength rate caps and their have an effect on on inflation.
Key quotes
“The caps on strength fees permit the reorientation of spending to the relaxation of the consumption basket and as a consequence probably greater inflation than in any other case would be the case in all these different products”
“That’s some thing we seem at carefully.”
“What’s going to appear when the caps are removed?”
Will inflation type of soar back? What will the electricity costs be at that time? We don’t know.”
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