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Podcast: Beyond Currency
Episode: 23 June 2022 - Central Bank risking credibility
Description: Data published yesterday confirmed that headline inflation in the UK continues to rise, but the rate of increase may be slowing.
The consumer price index rose by 9.1% year-on-year in May, following a rise of 9% in April.
In her speech earlier this week MPC member Catherine Mann argued that every one percent rise in U.S. interest rates will see the pound devalued by 4.5% over a two-year period, and add 0.5% to UK inflation.
Given that the Federal Reserve is committed to continuing to hike rates in ever larger increments, the Bank may need to keep pace unless it decides that any...