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Vicky Pryce: Business Correspondent on the meeting between central banks regarding interest rates · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks. It'd be
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  Speaker 2: Right it's going to our business correspondent, Vicky Price. Nice
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  Speaker 2: to have you on the program. Vicky. As always we
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  Speaker 2: go thank you. Big week of central bank meetings. We've
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  Speaker 2: got the feed, we got the ECB and we got
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  Speaker 2: the Bank of England.
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  Speaker 3: Absolutely and the question is what will they do. The
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  Speaker 3: general consensus is that they're not going to do anything.
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  Speaker 3: They're going to hold rates where they are now and
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  Speaker 3: then see what happens with inflation, because of course we
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  Speaker 3: don't know how long the conflict would last. Of course,
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  Speaker 3: there is a cisfire at present. It's supposed to be
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  Speaker 3: extended sort of forever. But of course something needs to
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  Speaker 3: happen in terms of opening up the straight off hor
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  Speaker 3: moves and oil flowing again, because of course that is
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  Speaker 3: what is causing high inflation. So that's worrying the Central
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  Speaker 3: Bank is, of course, but I think they are trying
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  Speaker 3: to calm the markets. And the markets you know, vary
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  Speaker 3: from expecting maybe interest rate increases coming fast in the
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  Speaker 3: next few months to well, perhaps we're not going to
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  Speaker 3: see that at all. Because things will come down. Real
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  Speaker 3: uncertainty right now is the way we describe the situation.
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  Speaker 2: And meantime we've got some saying, well, we could have
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  Speaker 2: inflationary precious continuing for eight months or more.
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  Speaker 3: Yes, what the government here is saying is that even
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  Speaker 3: if there is a conflict resolution so we get everything
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  Speaker 3: sort of moving again. First of all, it's going to
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  Speaker 3: take quite some time, of course, for a number of
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  Speaker 3: the production facilities that are there in the Gulf which
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  Speaker 3: have been hit to be able to start producing again.
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  Speaker 3: We've had real concerns about whether gas supplies will start
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  Speaker 3: again because we've had hits of in Kuwait, sorry in
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  Speaker 3: cut out of golf installations and golf refinery. So that's
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  Speaker 3: going to be a bit of a problem in terms
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  Speaker 3: of things coming out again. And indeed in all the
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  Speaker 3: other countries in the Gulf, there are problems in terms
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  Speaker 3: of how to get their oil and gas out of
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  Speaker 3: the region and many many of those production facilities have
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  Speaker 3: been hit. So if that is indeed the case, then
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  Speaker 3: it could take years. But I think what the concern
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  Speaker 3: is more generally is that even if there is a
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  Speaker 3: better supply coming, what we've seen so far with those
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  Speaker 3: high fuel costs with head and impact on prices across
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  Speaker 3: the board. So we've even beginning to see that in
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  Speaker 3: food prices. There are concerns also that lots of other
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  Speaker 3: products are going to be affected because of course they
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  Speaker 3: have inputs from oil or the Gulf which have not
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  Speaker 3: been coming through, so quite a lot of refined products
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  Speaker 3: that are absolutely needed, and of course any delay in
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  Speaker 3: getting anything over and higher costs of fuel for the
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  Speaker 3: ships that are bringing them. All these things are going
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  Speaker 3: to still be felt through the economy for quite some time,
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  Speaker 3: like we did after COVID and really like we did
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  Speaker 3: after the invasion of Russia of Ukraine.
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  Speaker 2: Interesting stuff. Vicky Vicki Price, Chief Economic Advisor the UK
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  Speaker 2: Center for Economics and Business and our business correspondent.
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