Bank of England Governor Andrew Bailey spoke as part of a panel discussion on the sidelines of International Monetary Fund meetings in Morocco. over the weekend.
- said he was puzzled by the continued strength of pay growth in the UK
- said its not yet responded to the BoE’s interest rate hikes
- increases in borrowing costs were having an impact on employment numbers and in the housing market
More:
- potential growth in the UK has fallen from 2.25-2.5% in the past to “at best, 1.5%” and “that complicates monetary policy”
- signalled rates are likely remain at around the current 5.25 per cent as policy “has to be restrictive” to get inflation back to 2 per cent
- “The last mile will be the hardest”
Bailey added that the Bank of England’s fourteen successive increases in borrowing costs are “having an effect” and “there has been some good news on inflation lately”.