Bailey speech: Will adjust bank rate as necessary to return inflation to target sustainably

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 25 basis points to 4.5% in May.

Key takeaways

"Want to emphasize that having large upside risk on inflation does not call into meeting inflation target."

"Upside risks may not materialize."

"The Increase in UK bank funding costs after overseas bank failures was short-lived."

"Changes are still working the way through the economy, MPC factors this into policy decisions."

"MPC will adjust bank rate as necessary to return inflation to target sustainably."

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."