Monday, August 15

BoE’s Bailey pledges to bring inflation back down to target

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LONDON — The Bank of England’s Monetary Policy Committee will focus on bringing inflation back down to its 2% target from more than 9% now, Governor Andrew Bailey said on Tuesday.

“The Committee will be particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response,” Bailey said in a speech hosted by OMFIF, a central banking think tank.

“Bringing inflation back down to the 2% target sustainably is our job, no ifs or buts about that,” he added.

The British central bank said last month it was ready to act “forcefully” if needed to prevent the recent surge in inflation from becoming embedded in the economy.

Bailey used his speech on Tuesday to focus on longer-term questions facing Britain and the global economy, and said his comments did not represent a signal about the BoE’s next moves.

On Monday, Bailey told lawmakers that he still expected inflation would fall sharply next year and there was “a range of things” on the table for the MPC at its next scheduled meeting in early August. (Reporting by David Milliken and William Schomberg)