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Vicky Pryce: Business Correspondent on the meeting between central banks regarding interest rates · Early Edition with Ryan Bridge

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  Speaker 1: All right, let's go to our business correspondent, Vicky Price.
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  Speaker 1: Nice to have you on the program, Vicky, as always go,
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  Speaker 1: thank you. Big week of central bank meetings. We've got
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  Speaker 1: the feed, we got the ECB, and we've got the
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  Speaker 1: Bank of England.
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  Speaker 2: Absolutely and the question is what will they do. The
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  Speaker 2: general consensus is that they're not going to do anything.
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  Speaker 2: They're going to hold rates where they are now and
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  Speaker 2: then see what happens with inflation, because of course we
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  Speaker 2: don't know how long the conflict would last. Of course,
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  Speaker 2: there is a cisfire at present. It's supposed to be
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  Speaker 2: extended sort of forever. But of course something needs to
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  Speaker 2: happen in terms of opening up the straight off hormus
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  Speaker 2: and oil flowing again, because of course that is what
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  Speaker 2: is causing high inflation. So that's worrying the Central Bank is,
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  Speaker 2: of course, but I think they are trying to calm
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  Speaker 2: the markets, and the markets, you know, vary from expecting
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  Speaker 2: maybe interest rate increases coming fast in the next few
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  Speaker 2: months too. Well, perhaps we're not going to see that
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  Speaker 2: at all because things will calm down. Real uncertainty right
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  Speaker 2: now is the way we describe the situation.
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  Speaker 1: We've got some saying well, we could have inflationary precious
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  Speaker 1: continuing for eight months or more.
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  Speaker 2: Yes, what the government here is saying is that even
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  Speaker 2: if there is a conflict resolution so we get everything
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  Speaker 2: sort of moving again. First of all, it's going to
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  Speaker 2: take quite some time, of course, for a number of
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  Speaker 2: the production facilities that are there in the Gulf which
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  Speaker 2: have been hit to be able to start producing again.
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  Speaker 2: We've had real concerns about whether gas supplies will start
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  Speaker 2: again because we've had hits of in Kuwait, sorry in
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  Speaker 2: cut out of golf installations and golf refinery, So that's
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  Speaker 2: going to be a bit of a problem in terms
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  Speaker 2: of things coming out again. And indeed in all the
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  Speaker 2: other countries in the Gulf, there are problems in terms
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  Speaker 2: of how to get their oil and gas out of
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  Speaker 2: the region, and many many of those production facilities have
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  Speaker 2: been hit. So if that is indeed the case, then
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  Speaker 2: it could take years. But I think what the concern
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  Speaker 2: is more generally is that even if there is a
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  Speaker 2: better supply coming, what we've seen so far with those
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  Speaker 2: high fuel costs with head an impact on prices across
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  Speaker 2: the board. So we've even beginning to see that in
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  Speaker 2: food prices there are concerns also that lots of other
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  Speaker 2: products are going to be affected because of course they
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  Speaker 2: have inputs from oil or the Gulf which have not
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  Speaker 2: been coming through, so quite a lot of refined products
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  Speaker 2: that are absolutely needed, and of course any delay in
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  Speaker 2: getting anything over and higher costs of fuel for the
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  Speaker 2: ships that are bringing them. All these things are going
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  Speaker 2: to still be felt through the economy for quite some time,
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  Speaker 2: like we did after COVID and really like we did
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  Speaker 2: after the invasion of Russia of Ukraine.
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  Speaker 1: Interesting stuff. Vicky Vicky Price, chief Economic Advisor at the
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  Speaker 1: UK Scender for Economics and Business and our business correspondent.
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  Speaker 1: For more from earlier edition with Ryan Bridge. Listen live
• 2:58
  Speaker 1: to News Talks. It'd be from five am weekdays, or
• 3:02
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