Bank of England Governor Bailey said that there is currently little evidence that inflation is solidifying into the UK's price and wage settings. Bailey said at the International Finance Association's annual meeting held in Bangkok on Friday that the Bank of England is closely watching whether companies and workers will demand higher prices and wages due to rising costs, thus triggering the second round of effects of this round of inflationary shocks. “As far as the evidence we've seen so far, the signs are quite limited,” he said. It's still too early to draw conclusions.” The UK inflation rate is currently 3.1%, higher than the central bank's target of 2%, and is expected to rise to 4% in the next few months. The Bank of England believes that such a high level of inflation requires a response from monetary policy.

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