I suspect the Bank to deny this, but they have already admitted their models of inflation based on their own understandings of the issue do not work, so little weight should be given to that.
Instead it‘s time to cut rates and remove the only excuse businesses have to increase prices because interest rates are the only cost expected to remain high, and excessively so, from now into the future.
(…)
On September 22 the Bank‘s Monetary Policy Committee (MPC) raised rates by 0.5 percentage points to 2.25%.
Speaking at the G30 annual international banking seminar, Mr Bailey said: ‚The UK Government has made a number of fiscal announcements and has set October 31 as the date for a further fiscal statement.‘
He said that the Bank‘s monetary policy committee ‚will respond to all this news at its next meeting in just under three weeks from now‘.
(13.10.2022)
– Andrew Bailey told the Daily Mail a premature end to restrictions could result in a loss of confidence
– The Bank of England governor issued the stark warning at a time of increasingly heated debate over lockdown
– It comes as ‚hawks‘ have been advocating for early easing of restrictions to save the huge costs to economy
– On the other side, ‚doves‘ argue relaxing constraints too early would be reckless and devastating for the NHS