Andrew Bailey, Governor of the Bank of England, comments on the policy outlook and responds to questions from the press following the Bank of England’s (BoE) decision to hike the policy rate by 25 basis points to 5.25% in August.
Key quotes
“We expect inflation to take a further step down in July to around 7%.”
“We expect inflation to fall to around 5% in October.”
“More gradual pass through of energy price falls explains difference between UK and Eurozone CPI.”
“Less clear how fast non-energy prices will come down.”
“Food and drink inflation appears to have peaked.”
“We expect food price inflation to fall gradually this year.”
“Services price inflation brings unwelcome news since May.”
“We should not read too much into this, services price inflation reflects volatile elements.”
“Continued strength in services price inflation may suggest high inflation will persist.”
About Andrew Bailey
Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting.
Source: https://www.fxstreet.com/news/bailey-speech-we-expect-inflation-to-fall-to-around-5-in-october-202308031127