Cayman Islands, Caribbeanand International News
Sunday, Dec 10, 2023

Cost of living: Bank of England chief hits back at criticism it has 'stoked inflation'

Cost of living: Bank of England chief hits back at criticism it has 'stoked inflation'

Andrew Bailey uses a speech to reject criticism from predecessor Lord King in an interview with Sky News that the Bank, and others, were guilty of a mistake that amounted to a "failure of the economics profession".
The governor of the Bank of England has hit back at criticism that its decisions have contributed to the highest inflation in 40 years.

Andrew Bailey said he "rejected" the argument made by a predecessor, in an interview with Sky News, that the Bank of England and other central banks including the Federal Reserve and European Central Bank, shared responsibility for the cost of living crisis.

Lord King, who was governor from 2003 to 2013, argued they had fuelled rising inflation by printing hundreds of billions of pounds and dollars in so-called quantitative easing (QE) during the pandemic to support their economies.

He had suggested that the effects of the so-called loose policy, aimed at stimulating the supply of money in times of stress, amounted to a "failure of the economics profession" as they had now combined with external shocks, such as record energy prices, to inflict the worst financial pain on households since 1982.

But Mr Bailey told an audience at the Austrian central bank: "What I reject is the argument that in our response to COVID the Bank's Monetary Policy Committee let demand get out of hand and thus stoked inflation.

"The facts simply do not support this", he said.

He pointed to a reduction in the workforce as a much more likely cause of high inflation.

The latest official figures showed vacancies continuing to run at record levels - with people in jobs clearly seeking out better pay to better protect themselves from higher living costs as total job-to-job moves increased to a record high of 994,000 between January and March.

Mr Bailey also rejected the idea that the economy had been running too hot as economic growth "was only 0.6% above its pre-COVID level", the governor said.

He said that if the pandemic had not happened, the figure would have probably been substantially higher.

"What we do have is a very tight labour market.

"But that does not look like a story about rapid demand growth," Mr Bailey said.

"The labour force has shrunk by around 1% since the onset of COVID. It looks much more like an impact from the supply of labour."

Mr Bailey also reiterated hints that the Bank could hike interest rates further to help combat inflation.

"We have raised the official rate four times so far and have made clear that in order to bring inflation down to target we are prepared to do so again based on the assessment at each of our meetings," he said.

"The Bank of England will, as always, take monetary policy decisions to ensure that the inflation target is met over the medium term," he said.

Related Articles

Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner