Andrew Bailey, governor of the Bank of England, waits to deliver a lecture at the London School of Economics in London, UK, on Tuesday, May 21, 2024.
Bank of England Governor Andrew Bailey will hail the progress made in dampening inflation in the U.K. in a Friday speech, but also caution that monetary policy may need to remain restrictive for longer than expected due to shocks from the labor market.
Headline price rises in the U.K. hit the BOE's 2% target for two months this year, before rising to 2.2% in July.
However, he will caution that two less "benign" scenarios remain possible that will require the Bank of England to "maintain restriction for longer."
It comes after Federal Reserve Chair Jerome Powell on Friday gave his firmest comments yet indicating that interest rate cuts lie ahead for the world's biggest central bank, stating: "The time has come for policy to adjust."
Persons:
Andrew Bailey, Bailey, Jerome Powell
Organizations:
Bank of England, London School of Economics, U.S, Bank of
Locations:
London, U.S . Federal, Jackson Hole , Wyoming, Bank of England
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