Bailey speech: Consumers are more price conscious and holding back on spending

Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.

Key quotes

"Monetary policy cannot prevent short-term influences on headline inflation, nor should monetary policy respond to factors that will fade by the time policy takes effect."

"Short-term pick-up in inflation introduces some further uncertainty into near-term inflation outlook."

"Reasonably confident that pick-up in inflation will be temporary."

"Labour market is cooling."

"Context is of weakening economic activity."

"Evidence suggests firms are reluctant to pass on costs to consumer prices."

"Considerable uncertainty over extent to which weak economy is due to demand or supply."

"Consumers are more price conscious and holding back on spending."

"Unclear what form global trade policies will take."

"We must judge in future meetings whether underlying inflation pressures are easing enough to allow further cuts."

"Bank rate is not on a pre-set path."

"We must proceed carefully."