Skip to content
Subscriber Only
Markets
Economics

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

  • Bank of England Governor says furlough extension protects jobs
  • Unemployment in a year likely to be higher than it is now
U.K. Chancellor Urged to Unleash $140 Billion Fiscal Push to Aid Recovery
Photographer: Jason Alden/Bloomberg
Updated on

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.”