Monetary And Financial Stability And The Invasion Of Ukraine − Speech By Jon Cunliffe

4th April 2022

In his speech Jon Cunliffe, Deputy Governor of the Bank Of England talks about the impact that the Russian invasion of Ukraine has had on the UK economy and on UK financial stability. He discusses what implications this could have on monetary policy, and gives an assessment on the resilience of the financial system.

Over the past 2 years, the UK has seen three economic and financial shocks: the final stage of Brexit, the Covid pandemic and most recently, the Russian invasion of Ukraine, which the Bank of England has made clear it condemns.

I want to talk today about the impact on the UK economy and on UK financial stability of the last of these. We do not of course know the outcome of Russia's aggression in Ukraine; there are many courses the conflict could take. And it may be many years before we know whether this will be a structural, long lasting change in what is now essentially an integrated global economy. But I think it is possible now to see at least some of the channels through which it is affecting the UK and broadly, the scale and direction of the
impacts in the near term.

Starting points matter. The UK economy entered 2022 still affected by two major impacts of the path out of Covid - very high imported inflation, and a very tight labour market with strong pay growth.

Read the full speech HERE
Pdf 24 pages. 11 Charts.