"Bank of England Governor Andrew Bailey has been blamed for worsening the rise in inflation in the UK by Gerard Lyons, a former economic adviser to Gordon Brown and more recently Boris Johnson.

Lyons believes that the Bank’s failure to act before December in hiking interest rates has set back the recovery from the Pandemic, but, more importantly, placed the country in danger of falling into recession in trying to play catchup.

The rise in the wholesale cost of gas, driven primarily by the Pandemic coupled with the forthcoming rise in national insurance contributions, has placed the country in danger of slipping into recession.

Lyons also took aim at the Bank of England’s forecasting of the rise in inflation, which he says has constantly downplayed the seriousness of the situation. It appears that forecasts have been moulded to fit the shape of the MPC’s predictions, rather than the other way around.

Bailey’s communication with the markets has been ineffective. This has led to accusations of misleading them over a November rate hike.

"

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.