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Bank of England's Andrew Bailey explains inflation on TikTok – thoughts?

ended 19. December 2025

Bank of England Governor Andrew Bailey has answered questions about yesterday's interest rate decision, inflation, and the economy on TikTok.

Watch it here.

He explained how he expects inflation to go down next year.

  • Do you agree with Bailey's thoughts on inflation?
  • What does Bailey need to do for the economy? What's your message to him?
  • Any other thoughts?

Responses asap.

2 responses from the Newspage community

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Anita WrightVerified
Chartered Financial Planner at Ribble Wealth Management
A cautionary word of warning for people: the Bank of England — and, frankly, Andrew Bailey — have a poor track record on forecasting over the last decade. I would not place too much faith in the accuracy of this prediction either. Remember when we were told inflation was “only transitory”? Bailey was firmly in the transitory inflation club a couple of years ago, and that aged badly. We are in a massive deflationary squeeze at the moment. People are being taxed to the hilt and have less money to spend. That drags on demand, chokes economic growth, and inflation will naturally fall as a result. Whether it falls all the way back to 2% is another question. In truth, the squeeze is so large that inflation arguably should be below 2% by now. The fact it is not suggests the inflation pressure is still there and remains sticky. So, in plain terms: we are already being squeezed, growth is weak, and if the US credit bubble breaks, the knock-on effects here could mean even more pressure — on inflation, on rates, and on households.
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Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
Bailey's party trick on TikTok to be relevant to the Gen-Z and Gen-Alpha is quite sweet and admirable, but it doesn't change the fundamental problem. His 0.25% rate cut has successfully offered an aspirin for a broken leg. Let me explain. This is the same man who told us inflation was "transitory" a year or two ago, while it was already hitting double digits. Now he's promising it'll fall next year while households are being squeezed harder.

The real issue isn't Bailey's communication strategy on TikTok, but his credibility gap. We're in a deflationary squeeze right now because people have been taxed into submission and can't afford to spend. That naturally brings inflation down, but Bailey wants credit for monetary policy genius when it's actually fiscal policy brutality that is doing the dirty work.