Bank of England Governor Andrew Bailey leaves after addressing the media on the monetary policy report at the Bank of England in London, Britain, May 5, 2022. Frank Augstein/Pool via REUTERS
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SINTRA, Portugal, June 29 (Reuters) – The Bank of England has other options than being ready to act “forcefully” if it is necessary to fight inflation, Bank of England Governor Andrew Bailey has said. on Wednesday.
“There will be circumstances where we need to do more. We’re not ready yet for the next meeting. We’re still a month away, but that’s on the table,” Bailey said during a panel discussion at the European Central Bank’s Annual Forum in Sintra, Portugal.
“But you shouldn’t assume it’s the only thing on the table.”
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The BoE maintained its series of gradual hikes in borrowing costs earlier this month, raising rates by a quarter point to 1.25%.
The BoE said it was ready to act “violently” if necessary to stamp out the dangers of inflation, which it expects will exceed 11%, and financial markets are pricing in an 80% chance the central bank will Interest rates will rise by half a point in August.
However, Britain’s central bank has also forecast a weak demand outlook, and Bailey said on Thursday it is now “very clear” that the UK economy is at a turning point and is starting to slow.
Bailey also said the latest UK inflation data showed price growth shifting away from goods and towards energy and food prices, something the BoE will be watching “very, very closely”.
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reporting by Balazs Koranyi and Francesco Canepa writing by William Schomberg; Edited by Kate Holton and David Milliken
Our standards: The Thomson Reuters Trust Principles.
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