· Andrew Bailey Wiki · Bank of England WikiThe UK economy in an unpredictable world
Read full speech on bis.org ↗ContextSpeech at the British Chambers of Commerce Global Annual Conference in London; the Bank of England keeps inflation low and faces unpredictable trade policies and energy prices.
Why it mattersBailey weighs higher energy prices from the Middle East conflict against weakening UK demand in setting rates.
Problems raised
- The Middle East conflict pushed energy prices up.
- Services inflation depends on domestic costs and pay.
- Demand may weaken.
Solutions proposed
- Watch services inflation closely.
- Consider scenarios of faster disinflation.
- Set rates gradually and carefully.