🪙 8 Nov 2023: Tap News Wire > The Bank acknowledged its own role in squeezing the money supply via quantitative tightening. - #Banks

 Wed 11:11 pm +01:00, 8 Nov 2023  

posted by Tapestry

tapnewswire.com

However, it disputed the extent to which shifts in the money supply are down to its own actions and their subsequent impact on inflation.

Earlier this year Ben Broadbent, the deputy governor for monetary policy, said: “The lesson of history is that most movements in broad money occur independently of variations in the size of the central bank’s balance sheet.”

Regardless of what caused it, concerns are growing.

“The broad money numbers are contracting year over year,” says Ward. “This says to me that there is a very serious risk of moving into deflation in 2025.

“The economy has essentially stagnated over the past year. I think we are moving into a more formal recession now.”

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