BoE Governor Andrew Bailey said today, the forward guidance language was “very cautious” because of the high uncertainty. And it will take time to properly assessment how the “joint experience of COVID and Ukraine invasion causes world economy to emerge into new steady state.”
“Liquidity conditions have deteriorated in many commodity markets, margining costs have risen, which is of course a reflection of much higher volatility and risks in these markets,” he said. “We can’t take resilience, in particular in that part of the market, for granted. There’s a strong need to work together on this,” he said.
Bailey added that he’s starting to see evidence of an economic slowdown in business and consumer surveys. “We expect that this pressure on demand will weigh down on domestically generated inflation, other things equal at the moment,” he said.
