Economic Intelligence News Agency, March 14 — Bank of England Governor Bailey stated that the energy cost shock triggered by the U.S.-Iran conflict has so far had a relatively limited impact on overall inflation in the UK, but as time passes, avoiding broader inflationary effects is becoming more difficult.
Bailey said in a CNN interview aired on Tuesday (13th), "We need to pay close attention to how this inflationary shock transmits into indirect and second-round effects. So far, this transmission has been relatively mild in the UK, which clearly encourages me. But the longer it persists, the more difficult the situation becomes to manage."
When asked whether UK interest rates would soon be raised, Bailey did not give a direct answer. He said, "The analytical framework we have been relying on has not changed." Last month, Bailey warned that the longer oil and natural gas costs remain high, the harder it will be to resist pressure to raise interest rates. (rc)
Bailey said in a CNN interview aired on Tuesday (13th), "We need to pay close attention to how this inflationary shock transmits into indirect and second-round effects. So far, this transmission has been relatively mild in the UK, which clearly encourages me. But the longer it persists, the more difficult the situation becomes to manage."
When asked whether UK interest rates would soon be raised, Bailey did not give a direct answer. He said, "The analytical framework we have been relying on has not changed." Last month, Bailey warned that the longer oil and natural gas costs remain high, the harder it will be to resist pressure to raise interest rates. (rc)
