Energy prices and labour supply threaten financial stability says Bank of England governor

Treasury Committee meeting addresses inflation

Inflation in the UK remains a temporary phenomenon, according to Governor of the Bank of England, 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. Unemployment figures increase pressure on Bank of England as wages continue to lag inflation When addressing conce...