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Former Bank of England Governor Mark Carney told The Telegraph in an interview that Brexit is partly to blame for the UK’s high levels of inflation.
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Carney, who led Britain’s central bank for seven years until 2020, has been a vocal critic of the country’s split from the European Union, warning it could cause sharply lower house prices, a deep recession and soaring inflation.
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While Europe’s energy crisis and other supply shocks have contributed to rising costs, Brexit has been a major factor in the “unique” economic adjustment taking place in the country, he told the newspaper.
“We’ve made clear before Brexit that this will be a negative supply shock for a while, and the result will be a weaker pound, higher inflation and weaker growth,” he was quoted as saying. “There’s no fun in saying, ‘Well, we told you so’ because people have to live with that reality.” “
His comments come as unexpectedly strong UK inflation and wage data paved the way for further rate hikes from the Bank of England. Investors have priced in more than a full percentage point of increases over the next year, which would send the benchmark lending rate to its highest in two decades.
Read more: Britain faces recession and job losses if rates reach 6%
Consumers should prepare to pay higher borrowing costs for the foreseeable future, as rates will remain high for years to come, Carney told British television station ITV earlier this week.