Inflated: why city fees are rising for the Bank of England


NFLATION there are everywhere, not least when you are regulated Bank of England, is theoretically responsible for controlling inflation. Sharp heads on Threadneedle Street put their own fees this year has risen by £ 24.3 million so they can hire 100 new staff.

Wait, that’s average salary £ 243,000. Not all the money goes to salaries, but it’s still half the governor.

A real governor Andrew Bailey he needed to raise £ 575,000, so little that he couldn’t even remember it when asked by members of the Finance Committee.

He told people not to demand a salary increase, to live within their means. What the bank itself now shows is that it cannot do.

Like all of us, the bank needs more money.

As David Buick of the Aquis Exchange told me: “Allies of cryptocurrency, blockchain and bitcoin have asked the Bank of England and the FCA to play a leading role in regulating these new instruments, whose popularity has grown like wildfire. Authorities were in no hurry to take full responsibility, and frankly, ask the market to raise the inflation tab a little profusely. Honestly, why should it be?

The bank wants to get extra money to track new risks, including cryptocurrency. And you can understand why he wants to expand his 1340-strong workforce to deal with “new responsibilities in politics” after Brexit.

Keep in mind that few government organizations ever say they want to be smaller.

That extra £ 24.3 million is a 9% increase in the budget, which is roughly where inflation could peak if we’re lucky. This is inflation, which the Bank has slowed to counter, insisting it is a temporary affair.

The bank is now playing a desperate catch-up, having nothing but to raise interest rates, even as the economy falters because of Ukraine and inflation, which it has ignored for too long.

Heads of city firms moan that they spend too much time filling out surveys of regulators, including the Bank, on all sorts of “awakened” issues that they see as a waste of time.

The boss, who is now dealing with the crypto, while the bank is trying to sort out bitcoins, has reason to feel offended.

Inflated: why city fees are rising for the Bank of England

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