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Weakening UK demand could help bear down on inflation, says BoE governor

Andrew Bailey plays down risks of self-reinforcing acceleration in price growth
Andrew Bailey told MPs that he believed the ‘underlying path’ of price growth was still going downwards

The Bank of England governor signalled on Wednesday he was concerned about the possibility of weakening demand in the UK economy, a key reason he believed the country should stay on track for slowing inflation.

While the BoE had predicted consumer prices inflation will accelerate to 3.7 per cent this year from 3 per cent in January, Andrew Bailey told MPs that he believed the “underlying path” of price growth was still downwards.

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