Managing a country’s monetary policy with only the “blunt” tool of short-term interest rates is challenging.Andrew Bailey took over as Governor of the Bank of England following an unprecedented period of stability for the economy. Almost at once, the country was plunged into the COVID-19 pandemic, followed by rising inflation, which was due, in no small part, to the level of support pumped into the economy by a government desperate to avoid a deep and lasting recession.The Bank of England was the first G7 Central Bank to begin to hike rates and while the MPC may have been a little timid in the incremental size of the hikes it made, the models they were using at the time were not equipped to forecast the pace at which inflation would rise.Never had so much fiscal support been pumped into the economy, so blaming Bailey and his colleagues for the level of inflation created is grossly unfair.Beyond Currency Market Commentary:Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.