Tuesday, May 17, 2022

Bailey Admits Bank is Powerless


 

Andrew Bailey, Governor of The Bank of England, told MPs yesterday that inflation was being driven by factors outwith the control of the Bank of England (eg the war in Ukraine and rising energy costs).

He then went on to say that the effects of these price rises would "ironically" dampen demand and as such lead to a fall in inflation.

Given that, I am bound to ask what was the point of raising rates?

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