The former UK Independence Party (UKIP) leader and Brexit Party figurehead, Nigel Farage, has drawn criticism for blaming Bank of England Governor, Andrew Bailey, for the nation’s inflation woes.
Nigel Green, the CEO of deVere Group, a global financial advisory, asset management, and fintech organisation, has labelled Farage’s actions as “disingenuous”.
Farage’s accusations come as the Bank of England raises interest rates to 5%, the highest in nearly 15 years. Farage has claimed that this is symptomatic of the “economic incompetence” that is leading the country.
In response, Green has stated that Farage is merely creating sensationalist headlines that lack reality. He placed blame for the current inflation issues on Farage’s own actions, stating, “his Brexit lies in large part have caused the sticky inflation that has prompted the Bank of England to raise interest rates further.”
While acknowledging that all Western countries have experienced price hikes over the past two years, Green points out that the UK’s inflation is currently the worst in Western Europe. He attributes this primarily to the impact of Brexit, a cause Farage fervently championed.
Green also mentioned that Brexit has made almost every economic interaction with the EU more challenging and costly. This, he says, is a reality he has experienced as the leader of a global organisation.
According to Green, wage inflation, fuelled by Brexit’s termination of the free movement of people, is a “huge issue” that has “hit Britain’s labour market.” He noted that this issue is particularly evident in sectors such as transport, hospitality, and retail, which have suffered under the constraints of Brexit. He sees this as a direct cause for the Bank of England’s decision to raise rates.
In conclusion, Green said, “While the Bank of England might have made mistakes on inflation, it is disingenuous for Nigel Farage to now attack the Governor of the central bank as Brexit is a hugely important contributing factor as to why the UK is still battling hot inflation.”
