Britain’s labour market is softening and the key question is how that will feed through into inflation returning to target, Bank of England Governor Andrew Bailey said on Tuesday.
“I do see some underlying weakening, particularly in the labour market – and the labour market is softening,” Bailey said in an interview with CNBC from a central bank summit in Sintra, Portugal.
He repeated his view that interest rates are likely to fall gradually. On the outcome of the BoE’s next meeting in August, Bailey said: “We’ll see.”
(Reporting by Suban Abdulla and Sachin Ravikumar)
