Chancellor says high-growth economy is key to alleviating inflationary pressures

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The Chancellor Kwasi Kwarteng meets Andrew Bailey, Governor of the Bank of England, at HM Treasury to discuss how they will work closely together over the coming months. Source: HM Treasury

Chancellor, Kwasi Kwarteng has met with the Governor of the Bank of England, Andrew Bailey, at HM Treasury to emphasise his full support for the Bank’s mission to get inflation under control.

Inflation has hit its highest level in decades in many countries across the world, with Russia’s invasion of Ukraine pushing up energy and food prices alongside squeezing households’ real incomes.

The Chancellor affirmed the UK Government’s long-standing commitment to the Bank of England’s independence and its monetary policy remit.

The Chancellor and Governor agreed that getting inflation under control quickly is central to tackling cost of living challenges.

Chancellor Kwarteng updated the Governor on his growth and fiscal strategies, noting that reforms which create the conditions for a high-growth economy can help to alleviate inflationary pressures.  

He outlined the government’s plans to act this week in response to high energy prices, and reiterated that such action requires fiscal loosening in the short-term. The Chancellor confirmed that over the medium-term, the government is committed to seeing debt falling.

The Chancellor and the Governor agreed to re-instate weekly meetings – starting with bi-weekly meetings in the first instance – and coordinate closely to support the economy over the coming months.

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