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Central Banks

BOE Governor Warns of Upside Risk From Labor Market and China

Andrew Bailey

Andrew Bailey

Photographer: Hollie Adams/Bloomberg

Bank of England Governor Andrew Bailey warned that China’s sudden lifting of Covid restrictions, the continuing fallout of the war in Ukraine and the shrinking of Britain’s labor force are high on the list of dangers facing the UK economy and inflation outlook. 

Bailey said that China’s reopening, which has triggered a wave of Covid cases, will have “a negative impact in the short run” on the world’s second-largest economy, adding that officials at the UK central bank are keeping a “a very close watch.”