The last stronghold of Mariupol is being evacuated by Ukrainian forces
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Bank of England governor Andrew Bailey stated that he was unable to prevent UK inflation from reaching 10% this year and that he had sounded “apocalyptic” about rising food prices.
Bailey acknowledged that inflation was far too high but blamed global shocks, notably Russia’s invasion of Ukraine after top Tory MPs blasted the Bank of England for its handling of skyrocketing price hikes last week.
Bailey expressed concern about future hazards when discussing food costs. He told the House of Commons Treasury select committee that Ukraine’s inability to export its products was “a serious issue for this country.”
Ukraine is a major grain exporter, particularly wheat and sunflower oil. His remarks came as the CBI, the UK’s largest employers’ organization, called on the government to provide immediate financial assistance to those most affected by the cost of the living problem, as well as more support for businesses to promote investment.
Bailey stated that the Bank of England would raise interest rates far enough to bring UK inflation back to the central bank’s aim of 2% from an estimated peak of more than 10% in the autumn. In March, consumer price inflation reached a 30-year high of 7%, prompting the Bank of England to boost its main interest rate by a quarter-point to 1%.
“The most essential thing we can do is get inflation back to target without causing excessive economic hardship,” Bailey told lawmakers. He hinted that if necessary, the Bank of England would not hesitate to cause a recession. “We must get [inflation] back on track.” And it is obvious,” he stated.
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