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...

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