BOE’s Bailey: UK inflation is unacceptably high, but expected to decrease significantly

• The current preoccupation is inflation.
• Inflation is unacceptably high.
• The aim is to bring inflation down to the 2% target.
• Headline inflation is expected to decrease significantly over the rest of the year.
• Enhanced digitalization should not be used significantly to shift the mix of commercial bank and central bank retail money towards the latter.
• The level of economic activity has not managed to grow beyond its pre-pandemic level on a consistent basis.
• The UK economy has shown unexpected resilience in other ways.
• Commitment to physical cash is not altered by work on retail Central Bank Digital Currency (CBDC).
• Both price and wage increases at current rates are inconsistent with the inflation target.
• It’s crucial to see the job through.
• The Monetary Policy Committee (MPC) is monitoring developments in the labour market, wage growth, and services price inflation.
• The main motivation for a retail CBDC would be to ensure the public has central bank money for everyday use.
• It’s important to see the job through.
• Bitcoin-type cryptocurrency is best seen as extremely speculative assets.
• Bank resolution strategies must avoid uncertainty over what will happen to customers’ money.

You can read the full speech HERE