Rolling live coverage of business, economics and financial markets as UK car sales fall and construction growth eases
- Mike Ashley to hand reins of Frasers to future son-in-law
- Regulator again finds Pfizer and Flynn overcharged NHS by up to 2,600%
- FTSE 100 flat as investors await Bank of England bond buying signals
Oh hang on, back for one final question in the Q&A: how will investing for net zero affect inflation?
Bailey says it will require investment. That will affect the supply side of economies, and will be a threat and an opportunity.
Let’s break off from the press conference to get a bit more expert reaction.
James Smith, a developed markets economist at ING, an investment bank, said:
The big news is that the Bank of England could begin reducing the amount of government bonds it holds once rates reach 0.5% – so potentially in mid/late 2023. The change in threshold is not too surprising, but the finer details possibly hint at a more rapid unwind than might have been expected.
The speed of unwind has the potential to be a little quicker than we might have expected, assuming the Bank were to immediately stop all reinvestments – and indeed ultimately sell bonds back into the market.
