Nick Ferrari calls ‘failed’ Bank of England governor ‘the grim reaper’
Let’s just run over those grim facts again inflation will hit seven times the official target a year of recession on the way i appreciate there are outside causes and effects of that i get it the ukraine war and everything else i understand and soaring interest rates.
The failed i would suggest governor of the bank of england who for many now has been found that he was asleep at the wheel at the time that he needed to take decisive action as the nation emerged out of covet or locked down expert analysis in a moment but of course it’s you that’s going to feel the pain.
On your mortgage and i appreciate if you live on savings there is the other argument there is the other argument but if you let me be a little bit crude in my analysis i’m sure you grandad don’t want to see your grandchildren struggling to pay their mortgage or even handing back the keys and you get a little bit extra on your savings i doubt.
That you particularly want to see that here is the failed andrew bailey cpr inflation is now expected to peak at just over 13 percent in q4 of this year and to remain at very elevated levels throughout much of 2023 the bulk of that further increase reflects higher wholesale prices feeding.
Through to retail energy prices with a further large rise in the off-gem price gap projected in october i recognize the significant impact this will have and how difficult the cost of living challenge will continue to be for many people in the united kingdom inflation hits the least well-off hardest but if we don’t act to prevent inflation.
Becoming persistent the consequences later will be worse i start often i refer to greta thunder but it’s just blah blah blah isn’t it as she would say here he is the grim reaper talking about a recession.
Gdp growth in the uk has slowed and the economy is now forecast to enter recession later this year so this is this is a very uncomfortable situation to be in we’re very aware of the impact it has there on those who are least well off what i would emphasize or re-emphasize is a point i made in my opening remarks.
And it’s this if we don’t bring inflation back to target bearing in mind this huge scale of the energy shock we’re seeing if we don’t bring it back to target and if we get these so-called second-round effects entering in it’s going to get worse and it will get worse.
Precisely i’m afraid for those who are least well-off in society is andrew bailey speaking yesterday expert comment in a moment now my level of economics extends from a fairly decent dish grade at a level and that’s about it but should we turn to professor danny blanchflower who sat on the banks mpc monetary policy committee.
As an external advisor from 2006 to 2009 he described it yesterday as the worst day for the british economy in my lifetime he said that the bank of england’s argument for raising interest rates to combat soaring inflation and predicting recession was the argument was valued at nil.
He claims their actions were driven by political pressure incompetence and group think not me professor blanchflower who was on the bank’s monetary policy committee for a number of years