Rolling coverage of the latest economic and financial news, as MPs quiz the Bank of England about the economic cost of Covid-19Latest: Bank of England policymakers face MPsFewer jobs created in US than expectedIntroduction: UK house prices at fresh peak“Unexpectedly rapid recovery in housing market”Prices up 3.7% year-on-year in August 3.03pm BST Labour MP Angela Eagle challenges the Bank about its prediction that unemployment will hit 7.5% by the end of the year. Should it do more to prevent this?Governor Andrew Bailey says no-one wants joblessness to rise, and the Bank is using its tools to fight it where possible. 2.55pm BST Q: What is the price of gold telling the Bank of England about the economy, and inflation?MPC member Gertjan Vlieghe swats this question away. It’s a “terrible idea” to look at the nominal price of gold, because you’d expect a perfectly stable asset to hit fresh record highs each month in nominal terms.The fact it’s at all-time high tells you nothing. Continue reading…
Via: Bank of England warns of economic scarring from Covid-19 – business live

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