BoE Gov Bailey in a Sunday Times interview, said U.K. economic activity is slowing and supply-side issues are stoking prices

Which highlights there is a "two-sided" debate over inflation.

  • "The proximate cause of many of these inflation issues is on the supply side, and monetary policy isn't going to solve those directly"
  • "It doesn't get more gas, more computer chips, more lorry drivers."


  • "If the economy evolves in the way the forecasts and reports suggest, we'll have to raise rates,"
  • "Which, by the way, is entirely consistent with what I said in October."

Link to the report is here, not gated if you'd like more.

BoE Gov Bailey