Governor Andrew Bailey and other top officials spoke to Treasury Select Committee on Wednesday about last month’s decision to raise interest rates to their highest since 2008 in the face of double-digit inflation. He warned a recession is the “most likely outcome” for the UK economy. But in defending the Monetary Policy Committee from criticism of how they’ve handled inflation, he laid the blame on Russian president Vladimir Putin.
He said: “The person who is going to put this economy into recession is Vladimir Putin and not the MPC.
“The economy is undergoing a huge shock derailing.
“These increasing effects from energy prices and as the actuality and inflation have gone up so much, there is a very real risk here that that will have an effect on expectations and will come through to price setting.”
More to follow…