empty

2023.11.2112:51:00UTC+00BoE Chief Bailey Says Markets Underestimating Persistence Of Inflation

Bank of England Governor Andrew Bailey said that financial markets are putting too much weight on the current data releases and underestimates the persistence of inflation. At the Treasury Select Committee hearing on Tuesday, Bailey said the decline in inflation was good news.

Inflation will end the year a bit lower than the central bank estimated, the BoE Governor told lawmakers.

However, Bailey said the central bank is concerned about the potential persistence of inflation in the course of its journey down to the 2 percent target.

Regarding suggestions on raising the inflation target to 3 percent, Bailey said it is a very bad argument. He asserted that the target should remain at 2 percent.

At the November policy meeting, the Monetary Policy Committee decided to maintain the bank rate at 5.25 percent in a split vote. Policymakers Jonathan Haskel, Catherine Mann and Megan Greene had called for a quarter point rate hike.

At the hearing, MPC external member Catherine Mann said tighter monetary policy will be needed both to reduce inflation itself as well as to align inflation expectations with the remit.

"While I acknowledge that the monetary policy stance has started becoming restrictive, it is so only recently and not by so much," Mann added.

MPC member Dave Ramsden said, "Given my assessment of the outlook and the risks I would not rule out having to raise bank rate further in the future but I will continue to make my decisions on a meeting to meeting basis."

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST


Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.