UK Higher Education Engages with Central Banking: Cardiff Hosts Keynote on Inflation and Innovation

Bank of England and Cardiff University Strengthen Academic–Policy Collaboration on Monetary Strategy

On September 30, Cardiff University Business School opened its doors to Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, for an event of significance hosted within the Postgraduate Teaching Centre. This event was in collaboration with the Bank of England and was just one of many initiatives organised by the School about the continuing effort to connect business education and public policy with a view toward strengthening its mission in economic research and policy engagement. Ms Breeden joined the Bank's senior management in November 2023 and spoke about the recent trends in inflation and the general outlook for financial stability. She explained that although inflation fell sharply from its peak towards the end of 2022, recent bumps-rising to 3.8% in August and further expected to reach about 4% in September an issue a major concern. She said such an "hump" in inflation was unlikely to create any further pressure for inflation, which she attributed to the moderation of the Bank of England's monetary stance.

In her talk, Sarah praised the city of Cardiff and Cardiff University Business School for their contributions to higher education in the UK. She added that the institution prepares future leaders to navigate complex challenges in the economy, which is an important contribution to business and research. Her comments, which reflect a growing acknowledgement of British universities cooperating in economic policy education and the contribution to national financial resilience, highlighted the value of membership and research with which the School is concerned.

Among the issues she raised were a number of issues pertinent to economic research in UK universities and prospects for new financial systems. She spoke of the need for stricter integration of climate-related risks into financial decision-making and consistent top-quality disclosures with respect to climate to help speed up the transition to net zero. In addition, she dealt with innovation in the financial arena, in particular, the central bank digital currency, an increasingly high priority, along with the balance needed between technological advances and public trust and regulatory stability.

The question-and-answer segment closed with Professor Melanie Jones, who heads the Economics Section in Cardiff University Business School. She described the visit as a privilege that had little to do with hearing a member of the Monetary Policy Committee speak directly about the complex factors driving policy decisions. This is showing how Cardiff University engages through research on monetary policy, and how international students pursuing a business course in the UK enjoy first-hand experience with leaders in policymaking; it also brings out why monetary policy is important for UK business students-they garner from it their understanding of real-world decision-making and the changing role of central banks.

The address that Ms Breeden gave that day is available in full on the Bank of England's website. The event provides a strong example of how business education and public policy can work together in order to inform and inspire the next generation of economists, researchers, and financial professionals.

Editor’s Note:

It is an impressive step that Cardiff University Business School is now recognised as engaging with the Bank of England. Indeed, welcoming Ms Sarah Breeden, Deputy Governor for Financial Stability, reflects the high standards that Cardiff University is raising as a business and research school committed to public discourse on economic resilience. The visit provided both students and faculty a rare opportunity to hear from a senior policymaker regarding the complexities of inflation, financial stability, and the evolving role of central banks. Sarah Breeden openly discussed UK economic challenges at Cardiff University Business School, particularly inflation and the importance of trust in financial systems amid innovation. Her focus on climate change, digital currency, and academic collaboration highlights higher education's role in shaping informed policy. These crucial topics are central to the future of business education and public policy.

Skoobuzz believes that universities in England must not just do this in relation to their own learning but to contribute significantly to the national and global economic strategies by keeping engagement with the most influential policymakers. Cardiff University Business School has shown that it is not only possible but critical.

FAQS

1. What did the Bank of England discuss at Cardiff Business School?

At the event hosted by Cardiff University Business School, Sarah Breeden, Deputy Governor for Financial Stability, addressed the recent rise in inflation and explained why it is unlikely to lead to sustained inflationary pressure. She also discussed broader themes such as financial stability, climate-related financial risks, central bank digital currencies, and the importance of academic collaboration in shaping effective economic policy.

2. How is Cardiff University involved in monetary policy research?

Cardiff University Business School plays an active role in connecting higher education in the UK with real-world economic policy. By hosting senior policymakers like Sarah Breeden, the School provides a platform for dialogue between academia and institutions such as the Bank of England. This engagement supports research, teaching, and public understanding of monetary policy and financial regulation.

3. Why is monetary policy important for UK business students?

Understanding monetary policy is essential for business students, as it directly affects inflation, interest rates, and financial markets. Events like this offer students at Cardiff University Business School a unique opportunity to engage with current policy debates and gain insights into how decisions made by the Bank of England influence the UK economy and global financial systems.

4. What are the key insights from the Bank of England’s outlook at Cardiff University?

Sarah Breeden highlighted that although inflation had fallen from its 2022 peak, it had recently risen again, reaching 3.8% in August and is expected to rise further. She attributed this to temporary factors and maintained that the Bank’s monetary policy stance remained appropriate. She also emphasised the importance of financial resilience, climate risk integration, and innovation in the future of money.

5. How do universities in England collaborate on economic policy education?

Universities in England, including Cardiff University Business School, collaborate with public institutions like the Bank of England to enhance economic policy education. These partnerships involve guest lectures, joint research, and policy forums that bridge academic theory with practical policymaking, enriching the learning experience for students and contributing to national policy development.

6. What role does the University of Cambridge play in UK monetary policy?

While this event was hosted by Cardiff University, the University of Cambridge UK is also a key player in economic research and policy engagement. Through initiatives like the Banking Engagement Forum, Cambridge contributes to national discussions on financial stability, sustainable finance, and the future of monetary systems, complementing the work of other UK universities.

7. What is the significance of Sarah Breeden’s visit to Cardiff University Business School?

Sarah Breeden’s visit underscores the importance of business and research institutions in shaping public policy. As a member of the Bank of England’s Monetary Policy Committee, her presence offered students and academics direct access to high-level policy thinking. It also reinforced the School’s reputation as a hub for informed debate on economic and financial issues.

8. How does this event support international students studying business in the UK?

For international students, events like this provide valuable exposure to UK economic institutions and policy frameworks. Engaging with senior figures from the Bank of England enhances their understanding of global financial systems and strengthens the appeal of studying business in the UK, where academic learning is closely linked to real-world application.