BoE's Haldane sees post-COVID inflation risks

Credit: REUTERS/TOBY MELVILLE

Britain could face inflation pressures after the coronavirus crisis even if unemployment remains high, due to a potential lack of qualified workers for jobs that remain in demand, Bank of England chief economist Andy Haldane said on Monday.

LONDON, July 20 (Reuters) - Britain could face inflation pressures after the coronavirus crisis even if unemployment remains high, due to a potential lack of qualified workers for jobs that remain in demand, Bank of England chief economist Andy Haldane said on Monday.

Haldane, who voted against expanding the BoE's asset purchase programme last month, said he saw both upside and downside risks to inflation over the medium term.

"There has been some fracturing of domestic and global supply chains, raising the costs of some goods and services. And it is possible a higher long-term equilibrium rate of unemployment could cause the earlier re-emergence of wage pressures," Haldane said in a statement to parliament's Treasury Committee.

(Reporting by David Milliken, editing by Andy Bruce)

((david.milliken@reuters.com; +44 20 7542 5109; Reuters Messaging: david.milliken.thomsonreuters.com@reuters.net))

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