The Bank of England's governor, Andrew Bailey, has stated in recent trade that the Old Lady will have to act with rates if there is evidence of higher inflation expectations feeding into wages.

Key comments from BoE's Bailey

Says much of rise in inflation has to do with reopening after lockdowns.

Says what we are concerned about is once we have increase in inflation we want to stop it becoming generalised.
Says problem now is that what's pushing up inflation is not too much demand.

Says the risk is that we are going to get more bottlenecks, especially for labour.

Says we would and will have to act with rates if we see evidence of higher inflation expectations feeding into wages.

More to come...