Andrew Bailey, Governor of the Bank of England, appeared before the Treasury Select Committee olast week to answer questions on the Bank’s most recent Monetary Policy Report.
As a member of the Treasury Select Committee, Grantgham MP Gareth Davies asked the Governor about the Bank’s assessment of the inflation situation.
The Governor confirmed that inflation was largely being driven by global forces, in particular shocks to the supply of goods and energy caused by the pandemic and Russia’s war of aggression in Ukraine.
In response to these developments, the Bank of England underlined its commitment to ensuring that inflation returned to normal in the medium-term, using interest rates to ensure inflation expectations remain well anchored.
The meeting highlighted just how exceptional current economic conditions are, and just how careful the Government must be going forward as it continues to support the most vulnerable while keeping employment buoyant and sowing the seeds of future growth.
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