Daily Management Review

Bank of England Governor urges markets not to underestimate inflation in the UK


Financial markets undervalue the UK's ability to sustain high rates of inflation, Bank of England Governor Andrew Bailey stated in a legislature, according to the Finance Times.

Images George Rex
Images George Rex
In addition to confirming intentions to keep a tight monetary policy in place for some time, he said that investors place "too much importance" on statistics showing a drop in overall inflation.

"We are concerned about the likelihood of continued high inflation in the final stretch of our path to the 2% target," Bailey stated. "Additionally, I believe that the market is undervaluing that."

Inflation in the United Kingdom decreased to 4.6% in October from 6.7% in September, the lowest level since October 2021.

source: ft.com