BoE Governor Andrew Bailey said at the Today Programme that the real risks is import inflation from energy and food becomes “embedded”. As firms are not struggling to raise prices, inflation would be comes worse when its embedded.
“The first thing they (businesses) want to talk to me about is that businesses have trouble hiring people, and that is still going on. They’re also saying to us actually they’re not finding it difficult to raise prices at the moment. That can’t go on,” he said.
Bailey also said the interest rates are not going to go back to pre-2008 financial crisis levels. Additionally, “we don’t think that the rolling back of QE and the sale of assets is going to have a big impact on market interest rates”.