Bailey speech: CPI to rise above 2% at year-end due to transitory developments

Following the Bank of England's (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Governor Andrew Bailey is delivering his remarks on the policy outlook.

Key quotes

"Risks to GDP are skewed to the downside in the first period of forecast."

"Supply capacity expected to expand sharply as businesses reopen and staff return to work."

"CPI to rise above 2% at end of the year due to transitory developments."

"These temporary inflation effects have little medium-term significance."

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."