Inflation target should not be increased, says Bank governor

Governor of the Bank of England Andrew Bailey said the target would have been achieved were it not for the situation in the Gulf (Kirsty Wigglesworth/PA) - (PA Wire)

The Governor of the Bank of England has said the Bank should not increase its inflation target, stressing that it is important to give households confidence it can bring down the rising cost of living.

Andrew Bailey also told members of the House of Lords’ economic affairs committee that he believes inflation would currently be at the 2% target level were it not for the conflict in the Middle East.