Bank of England Governor Andrew Bailey on Thursday said that the BoE Monetary Policy Committee doesn't agree with people who think that they should raise interest rates a lot more, reported Reuters. UK businesses are really struggling to hire people, he added, noting that they are more concerned about hiring difficulties than they are about a potential future downturn. 

"We are worried about second-round inflationary effects," Bailey said, noting that in a competitive labour market, it is those with the least bargaining power who suffer most from inflation. "I don't use the word stagflation as it isn't well defined," Bailey added. 

Bank of England Deputy Governor Dave Ramsden said that we are seeing the hit to real incomes start to appear in consumer surveys.