more inflation and an even weaker pound
- Written by Costas Milas, Professor of Finance, University of Liverpool
With UK government bonds and sterling both falling hard in recent days, the Bank of England has been forced to step in. Only a few months after it started tightening monetary policy to fight inflation by raising benchmark interest rates and ending its programme to “create” money through quantitative easing (QE), it has made a U-turn.
It...