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11/27/2023, 8:45 AM (Source: TeleTrader)
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BoE's Bailey: Tough times ahead

Bank of England Governor Andrew Bailey told the ChronicleLive in an interview on Monday that tough times lie ahead in the fight against inflation.

Although he acknowledged the current situation is affecting the lowest income groups the hardest, he emphasized that inflation must be dealt with now. "I recognize higher interest rates do have effects. They do have effects on mortgage costs, and they also have an effect on rental costs because they feed through. What I would say, to be honest, is that if we don't get inflation down, it gets worse," the policymaker commented.

Bailey once again reiterated that even though the October inflation figures were "good news," it is still "too soon" to hold talks on easing the monetary policy. He noted that by the end of the first quarter of 2024, "we may be a bit under 4% but we'll still have 2% to go."

Baha Breaking News (BBN) / AY