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Podcast: Beyond Currency
Episode: 11th November 2021 - Monetary policy shouldn’t be used to offset short-lived shock
Description: "MPC member Silvana Tenreyo spoke yesterday of her belief that monetary policy shouldn’t be a tool to fix short-term shocks to the economy.
She expects the supply chain bottlenecks that are causing a disparity between supply and demand to fade in 2022, but the economy will remain fragile and in need of the support that low rates are providing.
She went on to say that the bigger inflation will become a concern if it spills over into the wider economy. Tenreyro was backed in this view by the Bank’s Governor Andrew Bailey, who spoke of his concern that wage dema...