Bailey speech: We should not keep monetary policy restrictive for excessively long

Andrew Bailey, Governor of the Bank of England, presents the Monetary Policy Report and responds to questions from the press following the Bank of England's (BoE) decision to leave the policy rate unchanged at 5.25%.

Key quotes

"There is no room for complacency."

"Inflation is still too high."

"Ofgem price cap means we can be confident about energy bills lowering inflation."

"Important that services inflation falls steadily over next year."

"If we maintain restrictive stance long enough, we will squeeze inflation out of the system."

"This means being on watch for more signs of inflation persistence that may require rates to rise again."

"We should not keep monetary policy restrictive for excessively long."

"We have to be mindful of balance of risks between doing too little and too much."

"How long restrictive stance will be needed depends on incoming data."

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."