The Bank of England will act on rates if inflation risks increase

Bank of England Governor Andrew Bailey said the Bank of England will have to act if it sees expectations of rising inflation pushing wages up, reiterating his latest message on the direction of monetary policy that last week shook financial markets. A

nd Bailey said during an online question and answer session organized by the Bank of England today that there is a risk of more bottlenecks in the economy, especially in the demand for labor, which may fuel expectations of higher inflation. “That is why we must and will act on interest rates if we see the evidence clear up,” Bailey confirmed, and the Bank of England kept interest rates unchanged last week, contrary to expectations.