Bailey speech: Evidence is clear that higher bank rate is having an impact

Andrew Bailey, Governor of the Bank of England, comments on the policy outlook and responds to questions from the press following the Bank of England's (BoE) decision to hike the policy rate by 25 basis points to 5.25% in August.

Key quotes

"Latest pay growth is materially above BoE's May forecast."

"Pay growth is notably stronger than standard models would suggest."

"Upside surprises on wage inflation suggest that it will take longer for second-round effects to fade."

"Evidence is clear that higher bank rate is having an impact."

"I will not judge what the path of BoE rates will be."

"More than one path for rates may deliver inflation back to target."

"We will judge what is most appropriate path for rates based on evidence."

About Andrew Bailey

Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting.