[ロンドン ２７日 ロイター] – Bank of England chief economist Hugh Pill said on Wednesday that he is likely to take a “significant policy response” to Chancellor Kwartengu’s big tax cuts, but will wait until the next meeting in November. He said no action should be taken.
Finance Minister Kwartengu on Monday announced a massive tax cut and a significant increase in borrowing. As a result, turmoil spread in financial markets, and the pound and British bond prices plummeted.
“In my view, the fiscal policy mix announced today will act as an economic stimulus,” Pill told the Barclays CEPR International Monetary Policy Forum. “We cannot help but conclude that this will require a substantial monetary policy response,” he said, adding that financial market turmoil would have a significant impact on the economy and would be factored into the Bank of England’s next forecast. .
Some market players have argued that the BoE should hold an emergency meeting soon and raise interest rates significantly to stop the pound’s depreciation, but Pill said the next meeting will be on Nov. 3. While acknowledging that there are still days to go, he said it would be better for the central bank to take a “more cautious approach, a less frequent approach”. The Bank of England will rely on communicating with the market, which requires respecting the bank’s independence from the government, he said.