Tight Policy, Thin Effect, What's Wrong with the UK Economy?
Bank of England (BOE) Governor Andrew Bailey said that low levels of household and corporate debt in the UK make high interest rate policy less effective than expected. He conveyed this at the annual central bank forum held by the ECB in Sintra, Portugal. According to Bailey, although interest rates have been raised to curb inflation, the impact on the economy is felt to be lighter because many parties are not too burdened with debt.
Bailey also observed signs of economic slowdown, including in the labor sector, but emphasized that monetary policy will remain tight in the near future. He added that the level of restrictions could be reduced gradually over time. When referring to global tariff policy, Bailey warned that past history cannot be used as a reference because the situation is always different.
Source: (ayu-newsmaker)
