Inflation red alert: Bank of England under crippling pressure as prices soar | City & Business | Finance

“The hope may well have been that rising prices were transitory in nature, but with Omicron spreading and signs of a further supply chain squeeze already showing, that transitory period looks like it’s lengthening.”

Expectations over the Bank of England’s decision-making have fluctuated considerably since a surprise vote to hold interest rates in November.

A booming jobs market since then has led to growing predictions of a rate rise, but that’s now been heavily overshadowed by the spread of Omicron.

Ed Monk, associate director at Fidelity International, explained the Bank was “caught between its two primary functions- controlling inflation and ensuring financial stability”.

Source link