Home Markets BoE’s Bailey says inflation above target is concerning -Yorkshire Post

BoE’s Bailey says inflation above target is concerning -Yorkshire Post

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Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London, Britain March 16, 2020. Tolga Akmen/Pool via REUTERS/File Photo

Oct 9 (Reuters) – Inflation running above the Bank of England’s target of 2.0% is concerning and must be managed to prevent it from becoming permanently embedded, the bank’s governor, Andrew Bailey, said in an interview with The Yorkshire Post newspaper.

“We are going to have a very delicate and challenging job on our hands so we have got to in a sense prevent the thing becoming permanently embedded because that would obviously be very damaging,” Bailey told the newspaper.

“Unfortunately, if you look at our last forecast, it is going to go higher, I am afraid.”

Bailey’s comments appeared to favour the more hawkish side of the debate regarding the outlook for interest rates in Britain, despite growing signs of a slowing economy.

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