Bank of England (BOE) Governor Andrew Bailey is testifying alongside several Monetary Policy Committee (MPC) members on inflation and the economic outlook before Parliament's Treasury Committee on Wednesday.
Also read: Bailey speech: On the exchange rate, there are dollar-specific factors at work
Key quotes
I don't think money supply is a direct indicator of inflation.
Direct relationship between money supply and inflation broke down years ago.
Inflation target is very important for the UK.
UK inflation-targeting regime has not failed.
Confident BOE will respond to price shock.
Good practice to review central bank approach from time to time.
Review is not a recognition that BOE regime is failing.
Current inflation overwhelmingly caused by Russia’s impact on energy prices.