Bailey speech: Inflation driven by higher costs of goods, supply bottlenecks

Following the Bank of England's (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Governor Andrew Bailey is delivering his remarks on the policy outlook.

Key quotes

"Remarkable how little headline news there has been on UK economic activity since May."

"We do not see a spike in unemployment when furlough ends."

"Number of people unemployed will be about 250,000 higher than before pandemic."

"Growing evidence of job vacancies and labour market tightness."

"Underlying pay growth is near pre-COVID levels."

"Inflation driven by higher costs of goods, supply bottlenecks, energy prices."

"Recovery is unbalanced, weighted towards goods not services."

About Andrew Bailey (via bankofengland.co.uk)

"Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting."