Andrew Bailey 'very uneasy' about rising UK inflation

Labour market uncertainty adds to pressures

clock • 3 min read
BoE decision to hold rates 'close call'
Image:

BoE decision to hold rates 'close call'

Bank of England governor Andrew Bailey has hinted that the main hurdle to increasing interest rates has been cleared with the end of the government's furlough scheme, but he admitted that he was "very uneasy" regarding the inflation situation.

Giving evidence to the Commons Treasury select committee on Monday (15 November), Bailey admitted that the rising cost of living was a cause for significant concern and that he had come close to voting for an increase in borrowing costs when the Bank's monetary policy committee (MPC) last met in early November. As the end of the UK's furlough scheme had generated little increase in unemployment so far, Bailey suggested that this was the first hurdle cleared with regard to rising rates, but more evidence was needed. BoE defies market expectations by holding rates The labour market l...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Event Voice: Your Questions Answered by Barings at the Fixed Income Event

Barings
clock 23 June 2022 • 2 min read
Kerry Leighton-Bailey, director of shareholder engagement at Lumi

Expecting the unexpected during a turbulent AGM season

Be prepared

Kerry Leighton-Bailey
clock 22 June 2022 • 4 min read
David Kimberley is an investment trusts writer at Kepler & Partners

Opportunity amid madness: Valuations more attractive in wake of panic-driven price drops

Buy opportunities have arisen

David Kimberley
clock 21 June 2022 • 4 min read
Trustpilot