Bailey speech: Near-term uncertainties remain, especially on labour market

Following the Bank of England's (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Governor Andrew Bailey is delivering his remarks on the policy outlook.

Key quotes

"What happens to energy prices is clearly very uncertain, material risks around this assumption."

"Inflation hits target three calendar quarters earlier under alternative energy price scenario."

"Inflation framework recognises there will be occasions when inflation will depart from target due to shocks."

"Given lag between change in monetary policy and impact on inflation, BOE will always focus on the medium term."

"Near-term uncertainties remain, especially on labour market and persistence of domestic cost and price pressures."

About Andrew Bailey (via bankofengland.co.uk)

"Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting."