BoE’s Bailey sees muted inflation effects, ahead of BoE's meeting

The Bank of England (BoE) Governor Andrew Bailey said that he doesn’t see significant second-round inflation effects in the UK, in an interview with Bloomberg TV at Jackson Hole.

Bailey stated, “We’re seeing quite subdued second-round effects, I think we’ve seen a softening labour market for some time now,” suggesting that he is in a wait-and-see mode, ahead of the BoE’s monetary policy on September 17.

Bailey stressed that the BoE is not pre-committed to an interest rate path, assessing the economic situation, meeting by meeting, adding that “We are seeing, at the moment, relatively muted second-round inflation effects.”

Key highlights:

WE ARE SEEING QUITE SUBDUED 2ND ROUND EFFECTS SO FAR

WE CAN WATCH THIS SITUATION FOR NOW

I CANNOT PROMISE THAT MUTED 2ND ROUND EFFECTS WILL CONTINUE