Bailey (BoE): inflation not far from central bank target

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(Finance) – For the governor of the Bank of England, Andrew Bailey September inflation data, which did not fall as most analysts expected, was not far from the central bank’s target, adding that a slowdown in core inflation was “quite encouraging.”

Consumer price inflation (CPI) unexpectedly held at 6.7% in September, the highest among all major advanced economies, which some insiders said raised the possibility of another rate hike. interest.

In an interview with the Belfast TelegraphBailey said the central bank didn’t expect “much change” in the data anyway.
“It’s not far from what we expected. Core inflation has come down a little bit compared to our expectations and that’s quite encouraging,” Bailey said.

The BoE governor expects a “noticeable decline” in the inflation rate when October data is released.

As for the situation of job market, Baley pointed to wages as an area of ​​concern for the central bank. “There wage growth it’s still well above the inflation target,” he said. “I understand, however, that people will want to see evidence that inflation is coming down. I think we can see that evidence. I think we’ll see more evidence by the end of the year.”

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