BOE Governor Bailey Addresses UK's Inflation Concerns

Bank of England Governor Andrew Bailey warns that the UK is experiencing a wage-price spiral, with domestic wage growth and price setting contributing to the persistence of inflation. This situation risks perpetuating "second-round effects," where workers demand higher wages to afford goods and services, leading to higher demand and pushing companies to raise prices. The UK inflation rate held above 10% in March, with core inflation steady at 5.7%. The Bank of England's monetary policy committee will continue to adjust its main bank rate "as necessary" to reach its 2% inflation target.