BoE Governor Andrew Bailey said in a speech, “monetary policymakers can and must take the actions needed to return inflation to target over a period that avoids unnecessary volatility in the economy”.
“The job of the Bank of England is to return inflation to target at a time when a very large headwind from external shocks, and an internal shock from a fall in the labour force, are reducing real incomes but risk leading to persistence in domestic wage and price setting, so-called second round effects,” he said.
“We have raised the official rate four times so far and have made clear that in order to bring inflation down to target we are prepared to do so again based on the assessment at each of our meetings,” he added.
