MNI BRIEF: BOE Bailey: Inflation Risks On Both Sides

The Bank of England's Monetary Policy Committee expected inflation to return to target in two years or so and that the risks lay both to the downside and upside, Governor Andrew Bailey said Monday.

Speaking at a Bruegel event Bailey said that the shift in the MPC's guidance in March, from stating that policy tightening was likely to saying that it may be appropriate, was a "reflection of the level of uncertainty."

More prolonged or intense supply chain disruptions posed an upside inflation risk but they could also resolve themselves and monetary policy did not have any tool to solve the policy dilemma, created by weak growth and elevated inflation, facing it, Bailey said.