Supply shocks are dictating inflation, King insists


The Bank of England's Monetary Policy Committee neither could nor should try to prevent the UK wage squeeze that is exerting an effect on living standards, Mervyn King, the governor of the central bank, said Tuesday.

King said in Newcastle the UK economy must endure a period of unhappiness, as the opinion of some that the Bank could have prevented the fall in take-home pay by controlling inflation through an earlier rate-hike was misjudged.

"That view is a misunderstanding of how monetary policy

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