BOE governor Bailey says monetary policy cannot stop energy price shock on inflation

The longer the Middle East conflict continues, the worse the impact will become
Where we go from here will depend on the size and duration of energy price shock
Monetary policy cannot stop higher energy prices from affecting UK economy, inflation
Second-round effects build more slowly than direct and indirect effects
That makes it a difficult judgement call in navigating monetary policy
Policy setting cannot wait for conclusive evidence of second-round effects before responding

More to come..

This article was written by Justin Low at investinglive.com.

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