‘Not doing his job very well!’ BoE Governor slammed over ‘apocalyptic’ prices

Cost of Living: Expert on Andrew Bailey’s comment

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The Governor of the Bank of England may not be doing a good job if the inflation is soaring, an economist warned. The Governor warned yesterday of “apocalyptic” food price hikes and blamed a “bad situation” on external shocks like the war in Ukraine and the lockdown in China. But to IEA’s head of Regulatory Affairs Victoria Hewson, the inflation was foreseeable, and her economist colleagues started ringing alarm bells long before inflation started going up.

Ms Hewson lashed out on GB News: “Unfortunately, if the governor of the Bank of England couldn’t see this coming, perhaps he’s not doing his job very well.

“Economists like my colleagues at the Institute of Economic Affairs have been warning that inflation was in danger of coming roaring back.

“And yet instead, we’ve just been pumping more money into the economy without accompanying supply-side and productivity reform.

“I think they could’ve been doing more these past several years.”

The governor of the Bank of England Andrew Bailey rejected criticism that the Bank failed to act fast enough to tackle inflation, adding that external factors also contributed to inflation.

“We can’t predict things like war – that’s not in anybody’s power”, governor Bailey said.

While the Ukraine war has exacerbated increases in energy prices, he added, the lockdown in Shanghai has pushed up goods costs on goods due to supply chain problems. He also pinpointed the labour shortage as another factor contributing to the rising inflation.

Ms Hewson continued: “I find it remarkable that the governor of the Bank of England can sort of talk about all these things as if he’s a sort of neutral fair party observer.”

“You know, you can fuel in the many supplies with a view to targeting inflation”, Ms Hewson added.

“It’s literally his job.”

In the governor’s defence, GB News’ Isabel Webster said: “he made this case yesterday, he claims 80 percent of the factors affecting inflation are external or foreign.”

“Well, he wouldn’t say that, wouldn’t he?”, Ms Hewson answered.

“So, you don’t accept that then because obviously we looked at China that it’s still very much facing problems with Covid, with lockdown supply chain?” asked GB News’ Isabel Webster.  

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“We look at what’s happening in Ukraine and also in Russia itself. I mean undoubtedly global challenges”, Ms Webster replied.

“Undoubtedly, that’s correct”, Ms Hewson conceded.

The governor’s comments to the House of Common Treasury select committee come as the Chancellor of The Exchequer Rishi Sunak is under mounting pressure to deliver some benefits to struggling families. Mr Bailey noted inflation could hit 10 percent later this year.

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