BoE’s Andrew Bailey Speech Highlights

Following the Bank of England’s (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Governor Andrew Bailey is delivering his remarks on the policy outlook.

“Cannot give a fixed time span for ‘transitory’ inflation.”

“Unemployment is not expected to rise materially in the near term, but there is a high degree of uncertainty.”

“MPC notes that CPI will be below 2% target at end of the forecast period, will probably fall a little further beyond that point.”

“The longer the period of above-target inflation, the greater the chance it translates into expectations.”

“What happens to energy prices is clearly very uncertain, material risks around this assumption.”

“Inflation hits target three calendar quarters earlier under alternative energy price scenario.”

“I would caution against views on the scale of the increase in bank rate that would be likely to push inflation below target.”

“Energy prices tend to go up then go down again, not stay permanently high.”