Bank of England Governor Bailey: Consumers seem to be more cautious than we expected.

Jin10 data, August 7th - The Governor of the Bank of England, Bailey, stated that consumers are more cautious than policymakers expected. “Consumers seem to be more cautious than we expected, and the broader downside risks to economic activity, as well as the risk of more sudden adverse developments in the labor market, may exacerbate this view. Food and energy prices are very important to consumers and often have a greater impact on inflation expectations than other prices, so we must be very careful to avoid any additional second-round effects on wage and price setting in the economy.”