Bailey speech: Bank rate is BoE's main tool for altering monetary conditions

Following the Bank of England's (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Governor Andrew Bailey is delivering his remarks on the policy outlook.

Key quotes

"Bank rate is BoE's main tool for altering monetary conditions."

"Impact of reducing stock of BoE assets is uncertain."

"Impact of asset purchases greatest in dysfunctional markets."

"Future steady-state stock of bank reserves will remain larger than before the start of BoE asset purchases."

"Recovery will be bumpy."

"MPC takes risk of persistently higher inflation seriously."

"Good reasons to think above-target inflation will be temporary."

About Andrew Bailey (via bankofengland.co.uk)

"Andrew Bailey previously held the role of Deputy Governor, Prudential Regulation and CEO of the PRA from 1 April 2013. While retaining his role as Executive Director of the Bank, Andrew joined the Financial Services Authority in April 2011 as Deputy Head of the Prudential Business Unit and Director of UK Banks and Building Societies. In July 2012, Andrew became Managing Director of the Prudential Business Unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies. Andrew was appointed as a voting member of the interim Financial Policy Committee at its June 2012 meeting."