Bank of England governor says Israel-Hamas conflict poses risks to inflation fight
CNBCOCT 18 2023
Bank of England Holds Rates, Hints at Coming Cut
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The Spin
Establishment-critical narrative
When the Bank of England had to increase rates to keep inflation in line with the 2% target, its MPC made ordinary people pay the price for its delay in increasing interest rates. Now, despite warning signs that this restrictive monetary policy is plunging the economy into a recession, the MPC insists on not lowering the base rate. Once again, the MPC has failed the British people.
Pro-establishment narrative
The Bank of England has tightened its monetary policy to ease the pace of price growth, successfully bringing inflation to 4% in December — down from the 40-year high reached in October 2022. As inflation is now expected to temporarily fall back to the 2% target by the summer, cuts in interest rates are already on the horizon. Yet, more evidence is needed to ensure that this is the right move, so rates have rightfully been held.