BoE’s Bailey: Longer Inflation Persists, Heavier the Impact

Bailey's framing shifts the emphasis from the level of inflation to its duration, which matters for how the Bank weighs persistence against the contained second-round effects it has flagged. The energy shock is treated as the key transmission channel, so the damage is a function of how long it runs rather than how high it spikes. With no new figures or policy signal, the open question is whether second-round effects stay contained if the energy shock drags on.