BOE Governor Bailey Says Risks to U.K. Economy Remain Tilted to the Downside

Bank of England Governor Andrew Bailey said risks to the U.K. economy remain tilted to the downside, a remark that may rein in expectations that policy makers may soon shift toward containing inflation.

Bailey reiterated the bank’s guidance that it doesn’t intend to tighten monetary policy until there’s clear evidence the economy is absorbing excess capacity, and he noted that unemployment is likely to rise and remain higher a year from now. For those reasons, risks are “on balance distributed on the downside, though less so as time goes by.”