Bailey Plays Down UK Second-Round Inflation Risks Bank of England Governor Andrew Bailey said the UK is not yet seeing significant second-round inflation effects, pointing to a softening labor market and declining private-sector wage growth. He said the BOE can continue to monitor the situation for now, despite inflation picking up and household expectations for future price increases rising. Bailey also rejected the idea of providing strong forward guidance, saying monetary policy should be assessed meeting by meeting in a volatile environment. Markets are nevertheless pricing a quarter-point rate hike this year and another by spring, while Bailey cautioned that he cannot guarantee subdued inflation effects will continue.