{"text":[[{"start":10.5,"text":"Bank of England governor Andrew Bailey has warned against rushing to judgment over whether energy price increases will seep into wider inflation, as the central bank weighs raising interest rates as soon as next month."}],[{"start":22.88,"text":"Bailey said that while it was frustrating that war in the Middle East had derailed hopes of on-target inflation, it was too early to form “strong views” on whether there would be so-called second-round effects from rising energy costs."}],[{"start":36.44,"text":"“It’s early days,” Bailey said on Friday at an event hosted by the Institute of International Finance in Bangkok. “To the extent we have seen evidence, it is quite subdued.”"}],[{"start":48.18,"text":"He said the problem was that the longer energy prices stayed high, the more corporate margins would be squeezed, prompting some companies to put up prices. “I am not taking anything for granted,” he said."}],[{"start":60.14,"text":"The words suggest Bailey is keeping his options open as the bank prepares for its next meeting. The governor has voted with the majority of the Monetary Policy Committee to keep rates on hold this year, even as the conflict in the Gulf has pushed UK inflation to 3.1 per cent, well above the 2 per cent target."}],[{"start":78.6,"text":"Traders have been betting that a majority of the committee will decide to raise interest rates on November 5, given how long the inflationary upsurge is lasting."}],[{"start":87.42,"text":"The Federal Reserve, Bank of Japan and European Central Bank have all tightened policy this year, even as the BoE keeps its key rate at 3.75 per cent."}],[{"start":97.8,"text":"The BoE would make a judgment on how widespread inflation could prove to be at every rate-setting meeting, said Bailey. For the time being, companies appeared focused on cost-cutting, he said, rather than passing on higher input prices."}],[{"start":111.3,"text":"“The longer the energy situation goes on, the harder that gets,” he said."}],[{"start":116.14,"text":"The good news, the BoE governor added, was that the UK economy is turning out to be “more resilient than we expected it to be”."}],[{"start":123.5,"text":"Official figures showed GDP rose by 0.7 per cent in the three months to August, stronger than forecast and up from 0.5 per cent in the previous three-month period."}],[{"start":133.34,"text":"The economy was being helped by relatively robust household finances and corporate balance sheets, Bailey said, while there had also been an improvement in investment levels, partly because of corporate spending on AI."}],[{"start":147.24,"text":"While big economies had been hit by falling government bond prices and rising yields, Bailey argued that the UK had not been “front and centre” of the volatility in the past few months. He said he saw a “greater degree of stability” in terms of the UK’s macroeconomic framework."}],[{"start":164.34,"text":"The BoE governor said he was positive about the contribution that AI could provide to growth but flagged two significant risks. Public trust in the technology was key, he said, while increasing levels of debt associated with AI investment could spill over into wider financial stability, which he added underscored the importance of the sector retaining public trust."}],[{"start":192.02,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792130493_4751.mp3"}