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The UK economy has shown “unexpected resilience” in the face of a range of external shocks, the governor of the Bank of England said.
In prepared remarks ahead of the annual Mansion House dinner on Monday, Bailey said that while resilience was a “good thing in many ways”, labour market tightness and demand pressure had made inflation more sticky than expected.
“Both price and wage increases at current rates are not consistent with the inflation target,” he noted in comments that he is due to deliver to an audience of financial and business leaders on Monday evening.
“It is crucial that we see the job through, meet our mandate to return inflation to its 2 per cent target, and provide the environment of price stability in which the UK economy can thrive,” said Bailey.
More to come on this developing story