BOE’s Bailey: UK inflation is unacceptably high, but expected to decrease significantly

  • The current preoccupation is inflation.
  • Inflation is unacceptably high.
  • The aim is to bring inflation down to the 2% target.
  • Headline inflation is expected to decrease significantly over the rest of the year.
  • Enhanced digitalization should not be used significantly to shift the mix of commercial bank and central bank retail money towards the latter.
  • The level of economic activity has not managed to grow beyond its pre-pandemic level on a consistent basis.
  • The UK economy has shown unexpected resilience in other ways.
  • Commitment to physical cash is not altered by work on retail Central Bank Digital Currency (CBDC).
  • Both price and wage increases at current rates are inconsistent with the inflation target.
  • It’s crucial to see the job through.
  • The Monetary Policy Committee (MPC) is monitoring developments in the labour market, wage growth, and services price inflation.
  • The main motivation for a retail CBDC would be to ensure the public has central bank money for everyday use.
  • It’s important to see the job through.
  • Bitcoin-type cryptocurrency is best seen as extremely speculative assets.
  • Bank resolution strategies must avoid uncertainty over what will happen to customers’ money.

You can read the full speech HERE

This article was written by Greg Michalowski at www.forexlive.com. Source