MNI BRIEF: BOE Policymakers See Transient Supply Bottlenecks

Bank of England Governor Andrew Bailey said that the supply blockages that are fuelling rising inflation should prove fleeting, telling the Treasury Select Committee that "we expect the supply bottlenecks to sort themselves out."

His colleagues Deputy Governor Dave Ramsden and Monetary Policy Committee member Silvana Tenreyro stated that they expected supply to pick up and inflation to come back to around target. But Ramsden, in written evidence, said he placed more weight on higher inflation being more persistent, rather than less, and that he expected headline CPI inflation, which fell to 2.0% in July, to rise to 3% in August and to around 4% before returning to target.

Separately, Bailey made the case against ending the current of asset purchases easing early, saying that it would be tightening policy.