Andrew Bailey repeats call for wage restraint as inflation set to hit low-income households hardest

Inflation to hit 7% in April

clock • 1 min read
Andrew Bailey: “If everyone takes a pay rise inflation second round effects will set in."

Andrew Bailey: “If everyone takes a pay rise inflation second round effects will set in."

Those who are less well off will continue to suffer the effects of higher inflation and higher unemployment hardest, according to Bank of England governor Andrew Bailey, who was quizzed on inflation by MPs at the latest Treasury Committee meeting.

In today's meeting (23 February), committee chair Mel Stride queried the absence of the word ‘transitory' in the latest monetary policy report for February, to which the governor replied that the report's forecasts do still predict inflation returning to target, adding that the term had become "over used and over abused." The governor recently made comments urging citizens to err on the side of caution when negotiating pay rises. Labour MP for Wallasey Dame Angela Eagle asked the governor to compare his own salary to that of the average full time employee and care worker, to which he rep...

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