Deputy Governor of the Bank of England warns of continued risks to inflation and signals further interest rate hikes

China News Service, London, November 10 (Reporter Ouyang Kaiyu) Claire Lombardelli, deputy governor of the Bank of England for monetary policy, said at a central bank meeting on the 10th that the continued risk of British inflation is emerging. Without clear evidence of cooling inflation, there is a high probability that interest rates will need to be raised again in the short term.

Lombardelli was a member of the majority at last week's monetary policy meeting, with 8 votes in favor and 1 vote against raising interest rates to 4%. She said that there is a possibility of raising interest rates in the monetary policy meetings to be held in the near future. Each meeting will be dynamically evaluated based on the latest data. The situation in the Middle East, prices and labor market performance will all affect her voting tendency.

She focused on analyzing the British labor market, saying that the market vitality is weak, and the pace of corporate recruitment and personnel turnover has slowed down simultaneously. The mismatch between labor skills and job demand is highlighted, and the rising unemployment rate may not be as effective in suppressing inflation as before. The unemployment rate among young people aged 18 to 24 has increased. Compared with other European economies, this situation is more obvious in the UK.

British inflation has fluctuated repeatedly in recent years. Due to the intertwining of multiple factors such as energy, food costs and labor supply, the decline in inflation has been subject to twists and turns, and has been slower than that of many developed economies. Against this background, the Bank of England continues to remain vigilant to prevent inflationary pressure from solidifying and pushing up long-term price levels. Its pace of interest rate hikes also continues to affect the market's judgment on the UK's economic prospects. (over)