Energy prices and labour supply threaten financial stability, Andrew Bailey warns

Treasury Committee meeting addresses inflation

clock • 2 min read

Inflation in the UK remains a temporary phenomenon, according to Bank of England govenor Andrew Bailey, although the ongoing energy bills crisis poses a genuine concern to consumers.

In a Treasury Committee meeting held on Wednesday (19 January), Bank of England officials were questioned about the impact of inflation and interest rates on the nation's financial stability. The meeting comes one month after the central bank moved to increase rates by 0.15 percentage points to 0.25% in a bid to control inflation, and addressed key risks facing the UK's financial structure, namely inflation, interest rates, banking sector resilience and household debt. When addressing concerns surrounding inflation, which recently came in at 5.4%, marginally beating out market expecta...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

UK inflation falls to 3% to give BoE 'green light' for rate cut

UK inflation falls to 3% to give BoE 'green light' for rate cut

In line with expectations

Michael Nelson
clock 18 February 2026 • 2 min read
Interest rate cuts expected after UK GDP edges up 0.1%

Interest rate cuts expected after UK GDP edges up 0.1%

Construction output lowest since 2021

Patrick Brusnahan
clock 12 February 2026 • 2 min read
Leaked Budget document viewed almost 25,000 times ahead of speech

Leaked Budget document viewed almost 25,000 times ahead of speech

Office for Budget Responsibility chair Richard Hughes quit as a result

Jenna Brown
clock 11 February 2026 • 2 min read