world-economy

BOE's Bailey Signals Patience on Inflation as Central Banks Weigh September Moves

Bank of England Governor Andrew Bailey maintained his assessment that the UK has not yet entered a phase of significant second-round inflation effects. He made these comments ahead of the central bank's interest-rate decision scheduled for September 17th.

Bailey's stance contrasts with growing pressure among other central banks to tighten policy. European Central Bank Governing Council member Primoz Dolenc indicated a compelling case exists for raising rates in September, with additional data expected in December to clarify inflation trajectory.

Market expectations for the U.S. Federal Reserve's September decision have shifted following comments from Fed Governor Kevin Warsh at Jackson Hole, where he reiterated frustration with persistent inflation trends. Odds of a rate increase have risen accordingly.

Meanwhile, Canada's economy expanded at a 3.3% pace in the second quarter, marking acceleration following a prolonged weakness tied to tariff impacts and immigration slowdowns.