In the Asian session on Wednesday (April 26), the latest price of GBP/USD was 1.2416, and the opening price was 1.2406. Bank of England Deputy Governor Broadbent said the central bank should not ignore money supply indicators, but there was no evidence to support claims that the central bank’s massive bond-buying program spurred a surge in global inflation.
Bank of England Deputy Governor Broadbent said on Tuesday that the central bank should not ignore money supply indicators, but there was no evidence to support claims that the central bank’s massive bond-buying program spurred a surge in global inflation. Analysts have blamed the surge in prices on waves of money pumped by the Bank of England and other central banks since the 2008 financial crisis and during the COVID-19 pandemic. UK consumer price inflation hit 11.1% in October, the highest in more than 40 years, and remained above 10% in March.
Economists say the Bank of England, Federal Reserve and European Central Bank have not seen timely signals of increased money supply that should have served as warning signs of inflation. While the BoE did not ignore money supply, he said it needed to be considered in relation to other economic variables and that quantitative easing was different in practice from the “helicopter money” discussed in economics textbooks.
