Bailey speech: Path of inflation forecasts is not unreasonable given scale of shocks

Bank of England (BoE) Governor Andrew Bailey is delivering his remarks on the policy outlook and responding to questions from the press following the bank's decision to hike the policy rate by 25 basis points to 4.5% in May.

Key takeaways

"We push back on some arguments that say underlying cause of high inflation is down to past monetary policy."

"There is a level of hindsight in judgements on the BoE's performance."

"Path of inflation forecasts is not unreasonable given scale of shocks."

"There is no bias in our setting of rates looking forward, at this point."

About Andrew Bailey (via bankofengland.co.uk)

"Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting."