Andrew Bailey on inflation target
From WATCH HEARING NOW: Bank of England Governor Bailey Faces House of Lords Economic Committee | AC14 · · DWS News
“I don't think it's an argument for saying if you just raise the inflation target to 3% everything would be okay. I don't think that's the that's the answer to that question. I think um that would be a too simple an answer, a simplistic answer to it. Um but I think it does come back to this question that it it puts us in the position where we have to we have to focus more on how we manage the path back to target. And and of course, ultimately get there because we've got to give the public confidence that that you know, the target is is for real.”
On , Andrew Bailey, Governor at Bank of England, spoke about inflation target during WATCH HEARING NOW: Bank of England Governor Bailey Faces House of Lords Economic Committee | AC14 on DWS News.
About Andrew Bailey
Andrew Bailey, Governor of the Bank of England, appeared before parliamentary committees and spoke at conferences in recent months, addressing the UK economy, monetary policy, and financial stability. In April 2026, the Monetary Policy Committee held interest rates at 3.75%, a decision Bailey described as an "active hold" rather than a passive wait-and-see approach, given significant uncertainty. He stated that the path of the energy price shock, driven by the conflict in the Middle East, was "very uncertain" and that a prolonged spike could lead to higher rates, while a prompt end to the conflict could lead to a more benign scenario. Bailey also noted that the MPC had "in effect tightened policy" and that there was "a bit of time" before acting on second-round effects. Bailey discussed a range of other topics, including artificial intelligence, private credit, and trade. He said that UK banks did not yet have access to the AI model Mythos, but expressed optimism they would soon have access to other models. On private credit, he described it as "playing an important role" and "a good thing," but cautioned that it is "connected into the broader system" and that regulators need to understand those interconnections. He also stated that "tariffs are not the answer" to the scarring effects of China's entry into the world trading system, and that preserving a freer trade system is "very important." Bailey emphasized the importance of central bank independence, saying it is "very important" because central banks must take decisions over a longer time frame than electoral cycles.