World Food Prices Will Be Disastrous For The Poor, Says Bank Governor

The Governor of the Bank Of England has blamed the war in Ukraine for the high inflation currently present, and warned that “apocalyptic” food prices caused by Russia’s invasion could have a disastrous impact on world poverty. Andrew Bailey, the Bank of England’s executive director for markets and economic policy said they could not have predicted a war in Ukraine which he warned would have consequences on both sides. Russia has already started to impact the food supply for countries such as Egypt and Tunisia. The governor of one of those nations said he was concerned about Ukrainian wheat after speaking at last month’s IMF meeting with Finance Minister Oleksandr Danylyuk.

Bailey said that the problem with food shipment is becoming more and more serious. “It has major implications for this country, but also worldwide,” he added.
spectators may be wondering what will happen if there’s no way to get our nutritious crops out onto store shelves where they belong- especially when you consider all those people who depend on agriculture as their source of income or sustenance.

The head of Britain’s largest business organization has called on the government to help those struggling with rising food and energy prices. “There is a moral imperative here,” said Tony Danker, director general at CBI (the employers’ association). “We need action now or else we will see more people leaving jobs they cannot afford.”

Official figures are expected to show the annual inflation rate climbing above 9%, with experts predicting that it will reach 10% by October when energy prices are set to increase again. The Bank of England has told the Treasury Select Committee that it cannot be fully blamed for inflationary spikes in recent years. Asked if they could have raised rates sooner to prevent such situations, Bailey responded: “I don’t think we would have been able to foresee what happened with Ukraine.” The Bank of England has raised interest rates four times since last year, with their latest move coming just last month. “The whole situation is not at all ideal, and I am trying to work through what it will take for us as a country so that everyone has their needs met,” said the governor after MP’s asked him about why there had been such an extended period of time before any action was taken by banks.

In light of the recent reports that unnamed cabinet ministers have questioned whether or not The Bank should remain independent, Governor Mark Bailey issued this statement: “This is without question one of our biggest tests as a country since 25 years ago when we faced a hyperinflationary crisis.”

The Governor called on high-earning individuals “to set an example for other workers, advising them that they should think about whether their paycheck is worth it and what kind of impact this has not only in terms of financial stability but also on social justice……It is unbelievable that the Bank of England has repeated its calls for workers to take a wage hit – while saying virtually nothing about soaring profits at companies like BP and Shell. The last thing working people need right now, in what some are calling our worst living standards crisis since World War II, is having their wages held down.” The editor-in-Chief of Advisor Perspectives asked about the future dangers to the cost of living he said there could be prolonged supply chain bottlenecks as a result of disruptions in China or higher energy prices if Russia decided to cut off gas supplies.

Regulators are seeking input on proposals to introduce new reviews of the price cap in January and July, adding even more changes that have already occurred this year. They hope these additions will help them respond quicker during volatile markets.

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