Speaking in the UK's parliament, the Bank of England’s governor Andrew Bailey said on Thursday that the BoE's policymakers are concerned about the persistence of inflation and that's why they raised interest rates a week ago. He added that he is very uncertain, particularly about price-setting and wage-setting in Britain. However, Bailey said that the BoE's officials think that inflation is going to fall very rapidly this year. According to him, base effects will put a powerful negative trajectory on the UK inflation this year.
Also, the BoE's governor noted that Britain has a very tight labor market.