Reuters reports that the Governor of the Bank of England, Andrew Bailey, He said on Monday that inflation looks set to fall markedly this year as energy prices fall.
However, he stated that the shortage of workers in the labor market represents a “significant risk” for this scenario.
“I think going forward, the main risk to lower inflation…is the supply side, and in this country in particular, the issue of labor reduction,” Bailey said. to legislators from Parliament’s Treasury Committee.
Featured Statements
We are likely to see inflation drop next year as energy prices are coming down.
Labor shortages in the UK are the main risk to the central case of falling inflation.
The Chinese crisis is likely to have a short-term negative impact, but we do not expect it to be long-lasting.
GBP/USD Update
Andrew Bailey’s comments are similar to those he made late last year and are having little impact on GBP/USD in the American session. GBP/USD is down 0.2% at 1.2202. The range on the day so far has been 1.2170 and 1.2288.
Reuters states that “the Bank of England is expected to raise interest rates for the tenth time in a row early next month and the main question for investors is the size of the hike as the central bank weighs the risk of a Recession with the need to fight inflation”.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
