Bank of England Governor Andrew Bailey discusses the central bank’s historic interest rate hike and the outlook for U.K. inflation and economic growth.
Bank of England’s Bailey warns UK faces a ‘very big’ inflation shock
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dry talk
…so nothing to do with the excess demand created by the banks own monetary policy of money printing and zero interest rates. Nothing to see here. It’s everyone else’s fault!
“We’re struggling to hire people.” Yeah that’s a company-not-paying-enough-for-those-open-roles problem, not a labour-shortage problem.
And what will that do to the prices of the products they make or trade?
@Matt Smith they’ve already raised prices well above inflation. Prices are up 20% for food here in the UK and are 300% up for fuel. National inflation is predicted to hit 13.3% in October, at the same time fuel is predicted to rise a further 65%. We need a raise, they’ve got the money, pay a fair wage.
@Matt Smith they’ve alr gone up!
GUD NEWS👍️👍️
I don’t know why they don’t just bite the bullet and raise to 3%
Banks the biggest thieves
Tories out. Nigel Farage in
He has the good sense not to be an MP.
Nigel? wow
Personally I can’t wait!!
Blaming Russia. No way . Its the money printed for lockdown. 750 billion for covid . Thats the problem.
Very analytical, NOT! Blames Putin for high gas and that is the sole cause of inflation in the UK. What about all the government spending over the past two years and over supply of money? Food high, fuel high but wages low. The average person is already suffering but to think that hiking up interest rates would even dent this inflation is ridiculous and they know it!
Carney Mk 2
We’ll get through it.
Lousy government policy is to blame for inflation, nothing to do with Russia/Putin.
I didn’t think we got anything from Russia we don’t have a labour shortage they are coming across the Channel in their hundreds
That’s exactly what they wanted you to “think”.
Worst BoE governor in history. He almost makes Carney look good.
Funny cause all these energy suppliers started going bust last year before the war in Ukraine
Ukraine has nothing to do with the day to day life of Great Britain 🇬🇧
if u not educated u are in trouble
You’ve got to pay for all those government bailouts. Hand outs and free money.
For something that had a survival rate of 99.98 %.
We are in the beginning of the New World Order.
It’s got nothing to do with energy cost what’s so ever and it has nothing to do with Ukraine either and nothing to do with the Pandemic. Oil was $150/ barrel in 2008 and in 2011 it was $120-30 and inflation hardly moved. The Politicians are clueless and the Central Bankers have simply got it wrong. The reason we have inflation is the dilution of the currency through endless Quantitative Easing (£900 billion). Furlough payments during a period when there was negligible productivity didn’t help. 12 years of zero rates has made our economy intolerant to higher borrowing costs. Ignore any projections the BoE or any other Governmental organisation make regarding inflation or growth (GDP) going forward, their credibility is shot and their sitting in their offices shitting themselves it will all work out right. The only way inflation can be brought under control is to address negative real yield, the difference between interest on cash and the inflation rate, currently negative at 8.5%. Rates must be increased by at least 10% to have any chance combined with the BoE selling its asset purchases (£900 billion) to contract the M2 money supply. Mr Bailey should not only resign he should be sent to prison indefinitely.
100% LOCK HIM UP
Communist policys
London bridge is burning down 😃
The Bank of England haven’t got a clue, just like the Fed. They are supposed to have clever highly paid economists running the show but any armchair investor could tell you that high inflation was here over a year ago, while they have only just woken up and admitted its not ‘transitory’! They should all be sacked and rates need to be 11% RIGHT NOW!
The only thing he got right there was admitting that he has to put rates up now to save more pain later. the rest was balony, blaming it on Russia what a load of tosh!
What’s pushed energy prices up if not that? Excluding some energy companies/resource rich countries profiteering.
That wouldnt happen if you didnt send weapons to Nazis and more money. Nothing to do with Putin! This was coming anyway.
uk is now at the g20 backend. at least one thing they’ve been always good at bs-ing
I wonder how he came to that conclussion?? 🤡🤡🤡💉💉💉💉🤡🤡🤡
You need to grow up, Jack.
It’s simple, reopen the north sea oil rig and get fracking! No more of this far left net zero garbage because I assure you when people lose everything they will have no reason not to burn the politicians who ruined them alive.
Let the wars begin! 🔥
Reporters love to focus on the blame game.
All Russia’s fault? No mention of the decade long easy money…
Talk about closing the barn door after the horse has bolted!
Rates should have been raised last year! Why is this man still in his job?
Part of the “crew”
In terms for a 5 year old = We are stealing your money from you, because we can and you won’t do nothing about it.
You don’t have to use THEIR currency. You can own gold.
Stop printing money!!!. If your currency stops having utility in the form of a store of value we will stop using it, period the end.
In terms of a 6 year old it is pointless for an Island to keep interest rates unfeasibly low just because we were in a big EU gang.
We left that gang.
Interest rates should have been restored to a healthy 6.5% which would be best for an island economy.
It would appear low interest rates were used by the EU to punish the Brits and the British economy.
Time for the remainer white shirts to leave the EU behind and put the British people first in their own country.
Failure to cut the ties with the European mire should ensure they are removed from their positions and offered to live within areas more in tune with their euro dreams. Like Germany and France.
Both beautiful places to live but you need a certain cunning dislike of the British Isles to really flourish.
CONservatives are to blame
Agreed. Economically Incompetent.
Andrew , lets print more money, bailey decided when interest rates were already too low decided to reduce the borrowing rate EVEN lower to 0.1% Utterly Reckless and will go down as the most incompetent Governer in its 500 year History.
とうございます」、
These idiots still blame Russia even though we know Prices of Gas and Food were going up way before Russia invaded Ukraine.
He’s not going to struggle on his £575,000 salary plus pension contributions 👍
I’m not going to struggle, either. You are, though. 😁😁
Fed creating 4.8 Trillion USD in 20 & 21 plus other Central Banks creating money via QE adding to 16% of world GDP in same time. Is that a factor? If you Push interest rates up in the UK, does that actually subtract all the money created outside the UK? Obviously not. Its all about making people believe. Seems to me that the interest rate is going up to support the Pound, this will help parity with other currencies and help defend against more imported inflation. Russia’s moronic actions is just a factor not the cause. Politicians need to go to economic school. Too Much QE, Pandemic, war and brexit caused inflation. The voters are to blame for bad government, they are not to be blamed for the central banks being run by fools. Take a look at the numbers.
One myth being relentlessly propagated by the Establishment is that this is : “Due to the Ukraine War. Due to Russia”
No, this is wrong. The Economic blowback is because of *Our actions* against Russia. It was our decision to wage a knee-jerk economic war against Russia and the Russians are merely reacting to it.
Maybe we should have just limited it to a military war in Ukraine. War could have been fought successfully, just through arms transfers to Ukraine.
The lose-lose Economic War, which we began *was our decision, our escalation*. And was probably ill-thought out and a miscalculation.
*Economic War could have been launched after more calculations and better preparation.*
He prints 2.5 TRILLION quid then wonders why prices have gone thru the roof… total w⚓️
International students beware 🔥🔥🔥
No mention of Brexit
So the Central banks have been creating currency & keeping rates low for Ten years! But he is saying its not there fault we have high inflation! The same Bank Of England who gave there 5500 retired staff 11% extra top up for pensions in May 2022!
Biggest peace time borrowing in history comes back to bite you eh?
Quantative easing?
Currancy fxxking more like.
They don’t give themselves enough credit.
Cause of inflation is BANKS.
Cause of recession is BANKS.
Russia has very little to do with it.
Andrew Bailey will be playing the role of the Sheriff of Nottingham over the next few years’ and whilst he will be the “patsy”for the whole reasons of hiking interest rates in the coming year. The pain and misery this will cause is unimaginable and cannot be understated, however he does have a job to do, and frankly no one would sign up to do his job, but it’s a case of biting the bullet.
Finally we’ve got to accept actually that whilst the former Bank of England Governor was more like your “Street Hustler” of sort. Who could spin his way through anything, we are now getting down to the bare truth that yes, we did get it wrong in how we tackled the 2008 crash, and now other countries are learning from our mistakes as they go through it themselves.
The great reset!!!