BusinessQuiet 77d · day 77
Bailey downplays UK inflation threat ahead of BOE rate decision
Bank of England Governor says second-round effects remain subdued despite softening labor market.
What to know
- Bailey signaled no urgent inflation pressures justify rate action before the BOE's September 17 decision, citing subdued second-round effects and a softening labor market.
- The BOE Governor endorsed Warsh's critique of forward guidance as prone to unconditional statements that obscure inherent policy uncertainty.
- Bailey indicated ongoing monitoring of the inflation trajectory rather than a predetermined path, reflecting conditional rather than guidance-driven decision-making.
“Monetary policy by its nature is in the business of making policy forwards. We can't influence what inflation is gonna be tomorrow.”
Andrew Bailey, Bank of England Governor · Bloomberg Television · Aug 28, 12:32 PM
Andrew Bailey Bank of England Governor
Kevin Warsh Federal Reserve Chairman
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