BoE’s Bailey says would be concerned if price pressures spread By Reuters

LONDON (Reuters) – The Bank of England would need to rethink its monetary policy stance if inflation pressures spread beyond a handful of sectors suffering bottlenecks due to the coronavirus pandemic, Governor Andrew Bailey said on Monday.

“If we were to see signs that pricing pressure was becoming more generalised, then for me that would be a signal which would cause us to then have to evaluate where we were in terms of guidance, and at what point the guidance falls away,” he said.

“We are going to have to be looking at the entrails of the inflation evidence very carefully from now onwards,” he added.