Sept 25 (Reuters) – Bank of England Governor Andrew Bailey said on Friday that persistently high energy prices would make it harder for the central bank to leave interest rates on hold.
“We haven’t increased Bank Rate. It’s going to get harder to maintain that stance the longer we have high energy prices,” Bailey told the Monetary Economics Conference hosted by the University of Oxford.
Bailey added that the BoE could not afford to wait for the full evidence on how high energy prices were feeding into inflation expectations, although he described the evidence so far as “quite subdued”.
(Reporting by William Schomberg, writing by Andy Bruce; editing by William James)
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