BoE’s Bailey Says Market Curve Shows Inflation “Risk Premium”

Bank of England Governor Andrew Bailey has said the market curve indicates an inflation risk premium, suggesting investors are demanding compensation for uncertainty about future price growth. The comment comes as policymakers assess whether inflationary pressures are easing sustainably or could remain persistent. Market expectations can influence borrowing costs, currency movements and decisions on interest rates. Bailey’s remarks underline the challenge facing the central bank as it balances efforts to bring inflation down with concerns about weakening activity and household finances.