BoE’s Bailey sees extra inflation risk from Russia-Ukraine tension

LONDON – Bank of England Governor Andrew Bailey said on Thursday that financial markets now expected energy prices to take longer to fall than just a few months ago, which risked further embedding price pressures.

Greater tension between Russia and Ukraine were also a problem.

“That is a very great concern,” Bailey told lawmakers from parliament’s Treasury Committee.

“If you think about the relationship between transitory and these second round effects that can make it much longer – that again is a source of pressure in this story, which is a concern.”

(Reporting by David Milliken, writing by Andy Bruce)