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MNI BRIEF: BOE Monitoring Rising Shipping Costs - Bailey

(MNI) London

The Bank of England is closely monitoring the rise in shipping costs due to disruptions stemming from the Middle East crisis, BOE Governor Andrew Bailey told the Treasury Select Committee, adding that increased geo-political tensions are a major concern this year.

Rerouting Red Sea shipping "will increase shipping prices and shipping costs ... I think initially that will be an issue in the monetary policy world ... but it may feed through into the financial stability world," Bailey said.

"One of the things fortunately that hasn't happened is that we have not had a prolonged spike in oil prices," he added. (See MNI INSIGHT: BOE Forecasters Challenged By Supply Chain Snags)

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com

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