BoE Governor Extremely Uneasy About Spiking Inflation

Andrew Bailey, governor of the Bank of England, declared before members of the Parliament that he is ‘very uneasy’ about the UK’s inflation situation, in comments that suggest he could vote for an interest rate rise soon.

Testifying to the Treasury Committee, Bailey said this month’s vote to leave interest rates on hold was a ‘very close call’.

Bailey warned that the labour market looks tight, and pointed to anecdotal evidence that the end of the UK’s leave scheme had generated little additional unemployment to the present moment.
“The labour market looks tight, that’s the big issue at the moment”, Bailey said. He also explained that he wants to see the impact of ending the furlough scheme on unemployment before deciding to raise interest rates, but reminded MPs about the inflation mandate.