BOE Governor Andrew Bailey Defends Gilt Sales, Addresses Inflation Target
Andrew Bailey, Governor of the Bank of England (BOE), defended the institution's policy of buying and selling UK government bonds. This defense came in response to criticism, including from Nigel Farage and the Reform UK party. Bailey also indicated that the BOE might temporarily tolerate inflation exceeding its 2% target to support the UK's weak economy, provided that no second-round price effects emerge.
Andrew Bailey, Governor of the Bank of England (BOE), has defended the central bank's operations involving the buying and selling of UK government bonds.
The defense by Governor Bailey followed criticism of the policy, notably from Nigel Farage and his populist Reform UK party.
Speaking during a Bloomberg Television interview at the Reykjavik Economic Conference in Reykjavik, Iceland, on Friday, May 29, 2026, Bailey also addressed the BOE's inflation target.
He stated that the Bank of England could tolerate inflation temporarily remaining above its 2% target. This stance would be adopted to provide support for the UK's weak economy, contingent on the absence of 'second-round price effects'.
(Source: Bloomberg Markets)
