Andrew Bailey on fiscal policy
From WATCH HEARING NOW: Bank of England Governor Bailey Faces House of Lords Economic Committee | AC14 · · DWS News
“I think I would limit myself to in a sense I I'd put a little bit of a sort of frame on what the IMF said was that I think they were really supporting the sort of the the phrase sort of temporary and targeted uh as I said it measures. So, in other words, they were steering against a sort of a big all-embracing if you're thinking about it, be careful about big all-embracing packages, do something that's temporary and targeted. Targeted in the sense of the recipients, obviously. Temporary in the sense of the length of it. And I think in the context of overall fiscal policy and the overall fiscal position, I think that is sensible advice.”
On , Andrew Bailey, Governor at Bank of England, spoke about fiscal policy 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.