Bank of England Governor Bailey struck a cautious tone, emphasizing risks around inflation, financial stability, and growth, while signaling the need to stay flexible on policy as conditions evolve. • If high energy prices and supply disruptions persist, it will strain many countries significantly • Policy will respond if needed, but addressing the root cause of energy price shocks is most important • Returning inflation to target remains essential, with a focus on minimizing damage to growth and employment • Inflation expectations are closely monitored, though short-term moves often track headline inflation • ... (full story)