MP: Bank has been asleep at the wheel
Responding to the Bank of England’s decision today to raise the interest rate to 5%, John said,
“Households and consumers are now paying the price for the independent Bank of England, together with other central banks, being asleep at the wheel in combating inflation, which they initially ignored and then dismissed as transitory. A more proactive approach was needed. This represents a woeful neglect of duty.”
“Having long been critical of the Bank’s approach, it has now announced a long-overdue review of its inflation modelling. This needs to be deep-rooted and reflect the additional variables, including shortened supply chains, that are becoming increasingly the norm.”
Notes to Editors:
- John is a member of the Treasury Select Committee.
- For more information, please see John’s press release of 22nd May (https://www.johnbaron.co.uk/news/john-baron-mp-questions-bank-england-inflation-and-interest-rates).
