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MNI BRIEF: BOE's Bailey Says Looking At Supply Side Disruption

(MNI) London

Bank of England Governor Andrew Bailey said that there is evidence of supply side disruptions and that the BOE was watching closely for signs of these feeding through into higher inflation.

At a Citizen's Forum, Bailey said that there have been signs of input prices rising and supply blockages.

"There is a shortage of semiconductors at the moment" and shipping "containers in the wrong place at the end of last year," he said, citing high U.S. inflation figures and adding "We are watching it very carefully."

The BOE's central view, though, is that the looming rise in UK inflation will be transient with inflation returning to the 2% target and holding there two and three years ahead.

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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