Bailey speech: Underlying nominal wage growth expected to pick up further

Bank of England (BoE) Governor Andrew Bailey is delivering his remarks on the policy outlook and responding to questions from the press following the bank's decision to hike the policy rate by 50 basis points to 1.75%.

Key takeaways

"Economic cost of war in Ukraine will not deflect BOE from setting rates to hit 2% target."

"Underlying nominal wage growth is expected to pick up further."

"Labour market may only loosen slowly in response to falling demand."

"Mix of high near-term inflation and weak activity is a challenging backdrop for monetary policy."

"No ifs or buts in our commitment to 2% inflation target."

"More forceful action was justified in August because there are some indications price pressure becoming more persistent and broader."

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."