Bank of England Governor Andrew Bailey underscored on Tuesday that the United Kingdom is at the moment experiencing an environment of "weak growth," stressing the challenge of pinpointing whether the slowdown stems from supply-side constraints or weak demand.
Speaking at Bruegel, a Brussels-based think tank, the central bank's governor emphasized the "heightened uncertainty" weighing on Britain's financial markets, cautioning that potential "second-round" effects could emerge. Bailey also acknowledged Britain's "gradual" progress in lowering inflation.
Consumer inflation in the United Kingdom declined to 2.5% in December, falling compared to the month before.
