The president of the Bank of England (BoE, for its acronym in English), Andrew Bailey, admitted that there are signs of an economic slowdown in the United Kingdom. And even acknowledging that inflation pressures are important, he emphasized that it is relevant to wait for the events that occur in the course of a month, just before the next monetary meeting.
“We have not yet reached the terms of the next meeting. But that is on the table and we cannot assume that it is the only thing.”
Bailey recognized that the current process of inflation has been much more painful for families because it is concentrated in food and energy.
The central banker noted that financial markets are pricing in the upside risks of interest rate increases. And he asked market participants to keep in mind that turning points are harder to read and economic data can be very confusing.
He acknowledged that it will be necessary to tighten the monetary policy decisions, but warned that there is still a month to go before the next monetary meeting.
The central banker assured that in the BoE he will do everything possible to influence inflation downwards “at the lowest possible cost for households”.
energy in focus
As the president of the ECB did, Bailey confirmed that inflation will increase even more this year, as a result of energy prices.
He recalled the inflation data for June, which stood at 9.1% per year, to illustrate that there was a change in its composition, since it reflects the shock of energy and food prices after the interruption of the supply chain.
