Bailey speech: Will re-evaluate policy if economy evolves in live with central forecasts

Bank of England (BoE) Governor Andrew Bailey is delivering his remarks on the policy outlook and responding to questions from the press following the bank's decision to hike the policy rate by 50 basis points to 4% in February.

Key takeaways

"Significant and lingering fall in labour supply from 50-65 year olds weighs on UK economic potential."

"If wholesale energy prices remain at current levels, CPI could be nearly 1 percentage point higher in 3 years' time."

Asked if rates might have peaked, says "we have changed the language we used."

"Change in language reflects a turning in the corner but very early days."

"If risks emerge and we continue to get overshoots in wage data and services inflation, we will have to respond."

"If economy evolves in line with central forecast, we will need to re-evaluate."

About Andrew Bailey (via bankofengland.co.uk)

"Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting."