BoE Governor Andrew Bailey pointed to “strong evidence” that disinflation process is “working its way” through the UK economy, suggesting that the previous monetary tightening is having the intended effects.
“Our judgement with interest rates is how much do we need to see now to be confident of the process,” Bailey stated at an IMF conference overnight, indicating that BoE is looking for further signs of sustained disinflation before considering any reductions in interest rates.
Bailey also drew distinctions between the inflation dynamics in the UK and those observed in the US. The UK is still navigating the aftermath of “big supply shocks”, including those stemming from the global pandemic and geopolitical tensions, notably the war impacts. He contrasted this with the US, where there is a greater element of “demand-led inflation pressure”.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/548010-boes-bailey-sees-strong-evidence-of-disinflation-progress-in-uk/&media=https://www.actionforex.com/wp-content/uploads/featured-images/f-uk1.jpg&description=BoE Governor Andrew Bailey to "strong evidence" that disinflation process is "working its way" throughthe UK economy, suggesting that the previous monetary tightening is having the intended effects.){kind=link}