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Podcast: Beyond Currency
Episode: 24 May 2022 - Cost of living crisis is holding back UK economy
Description: Andrew Bailey admitted when speaking at a conference in Vienna yesterday that the cost-of-living crisis is driving the UK into recession.
He agreed with a questioner who commented that the effect on real wages of rising inflation is bound to hit demand.
However, he refused to believe that the fact that the Central bank failed to respond quickly enough initially drove demand higher and therefore stoked inflation. He went on to say that one of the primary discussions at the Monetary Policy Committee when agreeing the necessary level of tightening revolves around demand and balancing that with bringing inflation lower.
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