Skip to main content

MPs to quiz Bank of England Governor on inflation

17 February 2022

The Treasury Committee will hold a session with senior figures from the Bank of England (BoE), including Governor Andrew Bailey, at 9:30am on Wednesday 23 February.

Following the BoE’s February 2022 Monetary Policy Report, MPs are likely to use the session to focus on inflation, which is expected to peak at around 7.25 per cent in April, two percentage points higher than forecast in the November 2021 Monetary Policy Report.

The Committee is likely to explore whether the rise in inflation represents a failure in monetary policy, the potential impact of inflation on wages, and the likely impacts on inflation from Chancellor Rishi Sunak’s recent interventions aimed at addressing the energy crisis.

MPs could also discuss Governor Bailey’s recent statements calling for restraint in pay rises, as well as the extent to which businesses’ own profit margins can play a role in absorbing inflationary shocks. Recent BoE decisions to raise interest rates to 0.5 per cent and to begin withdrawing quantitative easing measures are also likely to be explored.

The BoE’s views are also likely to be sought on who is hardest hit by the cost of living crisis, levels of business investment in response to the current economic situation, the tightness in the labour market, and the consequences of older people leaving the workforce.

Witnesses

Wednesday 23 February

At 9.30am

  • Andrew Bailey, Governor, Bank of England
  • Ben Broadbent, Deputy Governor, Monetary Policy, Bank of England
  • Jonathan Haskel, External Member, Monetary Policy Committee
  • Silvana Tenreyro, External Member, Monetary Policy Committee

Further information

Image: PA