Bailey speech: Projection for economic activity has weakened since May

Andrew Bailey, Governor of the Bank of England, comments on the policy outlook and responds to questions from the press following the Bank of England's (BoE) decision to hike the policy rate by 25 basis points to 5.25% in August.

Key quotes

"We have to balance risks, we have risks both ways."

"Relative to May, more of the risk we saw has crystallised."

"Projection for economic activity has weakened since May."

"Key question is what confidence we have of wage demands following inflation expectations lower."

"Pay element of labour market has not softened, unlike other elements."

"I do not agree that BoE has lost control of inflation."

About Andrew Bailey

Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting.