BoE’s Bailey says inflation above target is worrying – Yorkshire Post

October 9 (Reuters) – Inflation exceeding the Bank of England’s 2.0% target is of great concern and needs to be managed to prevent it from gaining a permanent hold, the governor of the United Kingdom said. bank, Andrew Bailey, in an interview with The Yorkshire Post.

“We’re going to have a very delicate and difficult job to do, so we have to, in a way, prevent it from taking root permanently, because that would obviously be very damaging,” Bailey told the newspaper.

“Unfortunately, if you look at our latest forecast, it’s going to go higher, I’m afraid.”

Bailey’s comments seemed to favor the more hawkish side of the debate over the outlook for interest rates in Britain, despite growing signs of an economic slowdown.

Financial markets have already anticipated a probability of around 90% of a rate hike by the end of the year.

The governor told the newspaper that with the pandemic changing consumer behavior, the economy faces a whole host of challenges.

“We have very big and unwanted price changes,” he said.

Reporting by Bhargav Acharya in Bengaluru and Andy Bruce in London; Editing by Sandra Maler

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