Central Banks

BOE Governor Signals UK’s Inflation Fight Has Further to Run

  • Bailey points to wage growth and food prices as concerning
  • Remarks indicate pressure for interest rates to remain high
WATCH: UK retail sales tumbled more than expected in September. Lizzy Burden reports.Source: Bloomberg
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Bank of England Governor Andrew Bailey hinted policy makers can’t let up yet in their fight against inflation even as signs amassed that the UK economy is weakening.

Wages are growing too quickly to be compatible with the central bank’s 2% inflation target, and declining pressure on food prices has “got quite a way to go yet,” Bailey said in an interview with the Belfast Telegraph published Friday.