bis -Andrew Bailey - New prospects for money-此为英文文档.docx

AndrewBailey:Newprospectsformoney

SpeechbyMrAndrewBailey,GovernoroftheBankofEngland,givenattheBankofEngland,London,10July2023.

IwanttostartbywelcomingtheChancellorsannouncementsthiseveningaimedfirmlyatencouraginginvestmentintheproductiveeconomy.Sincethefinancialcrisisfifteenyearsagowehaveseenpotentialoutputgrowthfallinmanyeconomies,theUK

included.Asustainedandrobustimprovementofthesupplysideoftheeconomyistheonlymeanstoraiseproductivityandtherebythestandardoflivinginawaythatlaststhetestoftime.

Inpursuingsupplysideimprovements,wemustalsorespondtorecenteventsinawaythatrecognisestheneedtodiversifyoursupplychainsandmakethemmorerobust,butachievesdiversificationwithoutabandoningopenandcompetitivemarketsandfree

trade.Wewillgetthebestoutcomesbypushingbackagainsteconomicandfinancialfragmentation.

IspendtimemeetingbusinesseswiththeBanksnetworkofAgentsaroundtheUK,and

Iamleftinnodoubtthattherearemanyopportunitiesforsuccessfullong-term

investment,andthatwemusttakeuptheseifwearetorespondtochallengesand

opportunitiessuchasthetransitiontonetzero,digitalisationandartificialintelligence.

Butasyouwillunderstand,mypre-occupationatthemomentisinflation.Currentlyat8.7%inthelatestdata,consumerpriceinflationisunacceptablyhigh,andwemustbringitdowntothe2%target.

TheUKisnotaloneinthis.Thereiscurrentlyapopularsayingamongcentralbankers,fromtheDanishphilosopherSorenKierkegaard,which,toparaphraseslightly,isthatlifecanonlybeunderstoodbackwards;butitmustbelivedforwards.Thisisan

importantlessonaswedowhatisnecessarytobringinflationbacktotarget.

Lookingbackatallthathashappenedinrecentyears,theUKeconomyhasbeenhitbyaseriesofexternalinflationaryshocks:highergoodspricesinglobalmar