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BoE’s Bailey says fixing pandemic bottlenecks could cool inflation By Reuters

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© Reuters. FILE PHOTO: Bank of England Governor Andrew Bailey speaks at the Financial and Professional Services Address, previously known as the Bankers dinner, at Mansion House in London, Britain July 1, 2021. Stefan Rousseau/Pool via REUTERS

LONDON (Reuters) – Bank of England Governor Andrew Bailey said inflation could turn out lower than the BoE predicted in its latest forecasts if production and supply problems caused by the pandemic are fixed rapidly and goods flood back on to market.

“One of the risks is that these supply bottlenecks could unblock and we could get actually quite a wave of supply coming back onto the market,” Bailey said in a presentation to businesses, a day after the BoE said inflation was likely to hit 4% later this year.

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