BoE’s Signals Combating Inflation with Rates Action

The Bank of England’s governor, Andrew Bailey, has stated in recent trade that the U. K. will have to act with rates if there is evidence of higher inflation expectations impacting workers’ wages.

Key comments by BoE’s Bailey:
Much of rise in inflation has to do with reopening after lockdowns.

What we are concerned about is once we have increase in inflation we want to stop it becoming generalized.

Problem now is that what’s pushing up inflation is not too much demand.

The risk is that we are going to get more bottlenecks, especially for labour.

We would and will have to act with rates if we see evidence of higher inflation expectations feeding into wages.