Bank of England not to blame for soaring inflation, says governor

Bailey said he rejected the argument that ‘the Bank’s monetary policy committee let demand get out of hand and thus stoked inflation’. Photograph: Andy Rain/EPA

The governor of the Bank of England has hit back at critics who accused him of being asleep at the wheel while inflation soared and a cost of living crisis hit UK living standards.

Andrew Bailey said the nature of the shock meant higher interest rates could damage the economy, which recovered slowly from the pandemic during 2021.