The gamble for growth
Political Fix
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The Bank of England's Job Is to Clash Down on the Economy
Market reaction to the announcement was quite something to watch on Friday morning. We never thought inflation was going to stay above 10% for that long because it was always a peak due to energy prices. The big question for the Bank of England and for the inflation is where it settles. If you pump a load of money into the economy, it's not going to settle at two. It's going to settle somewhere considerably higher than that. And then the Bank ofEngland's job is to clamp down on the economy, create a recession. This is exactly what the Fed is doing in the US so that you get inflation down.
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