Bank of England “being used as a scapegoat” ahead of MP “grilling”, say investment and finance experts

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This afternoon, Bank of England governor, Andrew Bailey, and select colleagues, are due to be “grilled” by MPs about soaring inflation. Ahead of the anticipated grilling, investment and finance experts share their thoughts:

David Robinson, co-founder and chartered wealth manager at Wildcat Law: “The Bank of England is being used as a scapegoat. The inflationary pressures are not being driven by factors that interest rate rises can control. Instead, they are due to wider geopolitical events. Raising interest rates considerably will simply make matters worse through hitting the pockets of those least able to afford it.”

Scott Taylor-Barr of Shropshire-based broker, Carl Summers Financial Services: “The policymakers at Threadneedle Street are damned if they do and damned if they don’t. Inflation post-COVID was always going to be an issue due to supply chain issues and disruption, but a war in Eastern Europe impacting gas and oil supplies, as well as corn shipments, has only added to that. Would ramping the base rate up earlier have stopped any of this? Or would the Bank have then been under fire for stifling the recovery and putting businesses under?”

Marcus Wright, MD of Bolton Business Finance: “When it comes to the economy and inflation, hindsight is a wonderful thing. However, that being said the Bank of England has been slow to react to what is now looking like out-of-control inflation. Andrew Bailey is in for one hell of a grilling, but expect all the blame to be put on Covid and Russia.”

Rob Peters, director of Altrincham-based Simple Fast Mortgage: “Andrew Bailey is between a rock and a hard place. The primary remit of the Bank of England is to control inflation yet the primary inflation culprits, such as energy prices and supply chain issues caused by the pandemic and Brexit, are outside his control. Raising interest rates further is going to have a limited impact at this point. The Bank of England can only watch on like the rest of us.”

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