BoE Chief Economist Pill: Brits Should Admit They Are Poorer, Don’t Want Wage Increases

Bank of England (BoE) Chief Economist Huw Pill made startling remarks while participating in a podcast broadcast hosted by Columbia University Law School.

Pill said that people demanding wage increases and companies raising prices increase inflation and cause prices to rise even higher throughout the economy.

Claiming that businesses and workers create permanent inflation risk by trying to transfer the effect of inflation to each other, Pill made the following statements:

“So somehow in the UK someone admits they’re worse off and passes on higher wages or energy costs to customers etc. You need to stop trying to protect your real purchasing power by raising the prices of

Pill also made statements referring to the effects of rising energy prices on the UK economy.

Underlining that people are reluctant to admit they are worse off and that England is an importer of natural gas, the chief economist said: “You don’t have to be much of an economist to realize that if what you buy increases compared to what you sell, your situation will worsen.”

INTEREST RATES AND INFLATION IN ENGLAND

The Bank of England (BoE), in line with expectations, raised the interest rate by 25 basis points to 4.25% last month, raising interest rates for the 11th time in a row.

The Monetary Policy Committee, which sets interest rates, voted a 2-7 majority in favor of the latest increase. The statement said that “cost and pricing pressures remain high.”

On the other hand, according to the latest inflation data, inflation in the country remained in double digits. Annual inflation fell to 10.1 percent in March, a fall below expectations.

Annual consumer inflation is forecast to fall to 9.8 percent in March, far from its 41-year high of 11.1 percent in October.