Bailey says stable wage growth near 3% would be reassuring
The Bank of England governor's remark follows his own "vigilant but disciplined" description of policy earlier the same day.
Published
Bank of England Governor Andrew Bailey says it would be reassuring if wage growth expectations hold near 3%. He made the comment hours after describing the Bank's approach to inflation as "vigilant but disciplined" earlier on Tuesday.
The remark comes as policymakers weigh signs that inflation risks are tilting upward. Long-term inflation expectations rose to 4.3% in September from 4.1% in August, according to a Citi/YouGov survey. Deputy Governor Dave Ramsden has said inflation risks are now more likely to rise, pointing to food costs and wage agreements.
The Monetary Policy Committee held Bank Rate at 3.75% earlier this month, with six of nine members backing the decision. Traders have priced in four to five rate rises through 2027.
Gilt markets have been under separate pressure. The 10-year gilt yield reached its highest level since July 2007, at 5.441%, on Monday, and the Bank paused sales of long-dated debt as the 30-year gilt yield fell 11 basis points the same day.
Bailey's comment offers no new figure, only a conditional reassurance. Nothing in the remark moves gilts or sterling on its own.