13 October 2023 , 10:52
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Bank of England Chief Andrew Bailey has said that the UK's financial situation is looking up compared to last year.
Speaking at the International Monetary Fund (IMF)'s annual meeting in Marrakech, Morocco, he stated: "From an economic point of view, if we look back over the last year I would say I'm probably the one person that can come in here and say things really do look better today than they did on this day last year," adding confidently, "I can say that with some confidence."
Mr Bailey recalled his experience at last year's IMF meeting in Washington, which took place shortly after the mini-budget by then-prime minister Liz Truss and then-chancellor Kwasi Kwarteng. He told the Treasury Select Committee last year: "People were saying, 'We didn't think the UK would do this'".
On Friday, he noted signs of inflation decreasing but emphasised there is still much work to be done. He assured that the Bank's policy will remain "restrictive". Mr Bailey concluded: "We have made, I think, particularly in the last few months, solid progress in terms of showing signs that inflation is being tackled," but warned, "But let's not get carried away because there's an awful lot still to do.
"I think many of us now see policy operating in a restrictive fashion and I'm obviously going to have to say that I think that's what it needs to do."
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Mr Bailey said this will have an impact on the UK's economy and is contributing to a "subdued outlook" for the country.
But without getting inflation back to target, that outlook would be even more subdued, he said.
He said last month's decision to keep interest rates at 5.25% was "a tight one" and predicted "they're going to go on being tight ones".
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