• Rejects argument that BOE response to the pandemic let demand get out of hand, stoked inflation
  • UK has very tight labour market
  • But that does not look like a story about rapid demand growth
  • Policymakers can and must take action to bring inflation back to target
  • UK facing very big negative impact on real income
  • Policy tightening must take into account income shock

There isn't much in the remarks that we don't already know. But at least Bailey is hitting back at the critics of the central bank by refuting that it is their policy response that has led to the current situation. He's not wrong.  Inflation  is a global problem and the many causes are pretty much the "scarring effects" from the pandemic itself, not the policy response.