Bank governor’s own credit is on the line

IF the Bank of England’s governor, with every bit of financial information at his fingertips, has no answer to the inflation monster, it begs the question: What is the point of him?

After all, Andrew Bailey’s core objective is to keep prices in check. To openly admit feeling ‘helpless’ in the face of rocketing costs is not only absurd, but deeply irresponsible.

Of course, the inflationary surge pummelling families is global.

Yet Mr Bailey has been recklessly complacent over the threat. Long after his then chief economist, Andrew Haldane, warned in the Mail that the ‘inflation genie’ had escaped the bottle, he clung to the idea that rocketing prices were ‘transitory’.

Yes, he’s belatedly sought to combat the problem by raising interest rates. He’s also switched off the Bank’s money-printing presses. About time. But the governor has been left with egg on his face.

Sacking Mr Bailey is not a serious option. Nor is stripping the Bank of its 25-year independence. For amid the gloom, there are glimmers of hope. For the first time, Britain has achieved full employment – fewer people out of work than vacancies to fill.

Wages are rising, too. But after a string of missteps, it’s imperative the governor shows he has a firm hand on the tiller – over inflation and his work-from-home staff.