The emerging disparity between interest rates and inflation is set to leave the U.K. with something of a “dilemma” on its hands, the chief executive of insurance firm Aviva has said.
Britain’s vote to leave the EU has seen sterling tumble, prompting a steady rise in inflation; however, with limited economic growth, interest rates remain at record lows.
“Normally I’d ask two questions on interest rates,” Mark Wilson told CNBC Thursday. “You’re going to ask the question on inflation and you’re going to ask the question on growth. You’re certainly going to get the first with the lower sterling and Brexit. You may not get the second.”
“If the answer to one question is yes and the answer to the other question is no, well then you have something of a dilemma on your hands. ” he added.
