Bean's 'slowdown' warning muddies rate hike talk

clock •

Bank of England deputy governor Charlie Bean has defended MPC policy in the face of persistently high inflation, warning the economy could be on the verge of a "durable slowing".

His comments would seem to dimiss the likelihood of an early interest rate rise. Bean said CPI inflation will increase beyond its current level of 4%, which is already twice the MPC's target.  But the MPC must balance the risks posed by high inflation against economic headwinds which threaten to derail the recovery, he told the ABI's conference in central London yesterday. "We assumed the weakness in the Q4 GDP figures will be a temporary soft-patch, but it could be the harbinger of a more durable slowing. Only time will tell," he said. The 0.6% contraction in GDP in the last qu...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

'Affluent advice gap' sees unadvised individuals sit on £1.61trn amid commission concerns

'Affluent advice gap' sees unadvised individuals sit on £1.61trn amid commission concerns

The Lang Cat research

Jen Frost
clock 01 October 2026 • 3 min read
Succession Alliance launches first profession-wide succession survey

Succession Alliance launches first profession-wide succession survey

Open to people in all roles working in financial planning firms

Sophia Panayi
clock 29 September 2026 • 1 min read
The future of our profession will benefit from greater collaboration

The future of our profession will benefit from greater collaboration

'The profession continues to operate and evolve in an environment of profound change'

Keith Richards
clock 28 September 2026 • 4 min read