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Market: Bank of England has options but to act forcefully, says Bailey


SINTRA, Portugal (Reuters) – The Bank of England (BoE) has other options on the table to fight inflation than to stand ready to act “forcefully” if necessary, the governor said on Wednesday. British institution, Andrew Bailey.

“There will be circumstances where we will have to do more. We’re not there yet in terms of the next meeting. We’re still a month away from the meeting but it’s on the table,” Andrew said. Bailey as part of the Annual Forum organized by the European Central Bank in Sintra, Portugal.

“But you shouldn’t assume that’s the only thing on the table,” he added.

The BoE raised its key interest rate by a quarter of a point two weeks ago, its fifth hike since December, and promised that it would act “forcefully” if necessary in the face of inflation-related risks. she expects to even exceed 11% in a few months.

The central bank is also banking on a weak outlook for demand and Andrew Bailey said on Thursday it was now “very clear” that the UK economy was at a turning point and starting to slow.

The BoE governor pointed out that the latest UK inflation figures showed price growth shifting from goods to energy and food prices, which the institution will be watching “very, very carefully. “, he said.

(Report Balazs Koranyi and Francesco Canepar edited by William Schomberg; French version Laetitia Volga, edited by Jean-Michel Bélot)

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