BoE’s Bailey sees extra inflation risk from Russia-Ukraine tension
© Reuters. FILE PHOTO: The Bank of England is seen in London March 19, 2008. REUTERS/Luke MacGregor LONDON (Reuters) – Bank of England Governor Andrew Bailey said on Thursday that financial markets now expected energy prices to take longer to fall than just a few months ago, which risked further embedding price pressures.
Greater tension between Russia and Ukraine were also a problem.
“That is a very great concern,” Bailey told lawmakers from parliament’s Treasury Committee.
“If you think about the relationship between transitory and these second round effects that can make it much longer – that again is a source of pressure in this story, which is a concern.”
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