So Huw Pill of the BoE admits that #interestrates policies are a 'powerful' but 'blunt' tool to fight #inflation while warning that high(er) #food prices are likely here to stay for some time.
He went on to say that the BoE cannot mount 'surgical strikes' to help certain sections of society... (that would be unless its the #banking sector I assume?)
Accepting its not was wage rises driving inflation, he's decided that its imported!
Yup, we've moved to the foreigners are to blame narrative!
@ChrisMayLA6
When the only tool you have is a hammer, everything starts to look like a nail.
Watching the BoE try to use interest rates to solve the current economic problems is like watching an army use field artillery to combat a locust plague β an extremely powerful weapon, but totally inappropriate and ineffective, not to say unnecessarily destructive.
@KimSJ @ChrisMayLA6
It is unforgivable that any mature economy has only a single tool (central bank interest rates) to tame inflation.
The *first* tools should be anti-price gouging rules, trust busting actions and windfall taxes.
@KimSJ @ChrisMayLA6
You mean the political choice to let profits rip - while using pay freezes and interest increases to erode the sepnding power of the masses?
Yeah, complete coincidence. /s
Emeritus Prof Christopher May
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