9/21, 1:54 PM (Source: TeleTrader)
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Bailey says BoE to tighten policy further if needed

Bank of England Governor Andrew Bailey cautioned in the letter addressed to Chancellor of the Exchequer Jeremy Hunt on Thursday that the central bank might be required to further adjust its monetary policy should inflationary pressures "persist" for longer than expected.

The governor noted that despite indications that strict monetary conditions started to have its effect on inflation in recent months, he warned that there is "absolutely no room for complacency," and pointed out that policymakers will "keep monetary policy sufficiently restrictive" for as long as needed to bring the inflation rate to its 2% objective.

Bailey, one of the decisive votes in favor of keeping rates unchanged after fourteen consecutive hikes, disclosed that policymakers anticipate inflation to reach its target by the second quarter of 2025.

Baha Breaking News (BBN) / AB