BOE Governor Says UK Economy Is Near Full Employment Level

  • Bailey is less concerned about second round inflation effects
  • Little evidence job losses are needed to curb price growth

Andrew Bailey

Photographer: Hollie Adams/Bloomberg
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Bank of England Governor Andrew Bailey said that the UK is “near or at full employment” but also signaled he’s now less concerned about a wage price spiral developing.

Bailey said he is less wary of second round effects becoming entrenched and fueling a further surge in prices than he was a year ago. Speaking at a panel event at the Bank of Italy Symposium, he said that there is “very limited evidence so far” that an increase in unemployment is needed to curb inflation.