Bailey: Inflation risk underestimated by markets The Governor of the Bank of England, Andrew Bailey, cast a shadow over the Autumn Statement on Tuesday warning that the persistence of UK inflation was being underestimated by markets. “We are concerned about the potential persistence of inflation as we go through the remainder of the journey down to 2%,” the BoE’s inflation target, Bailey told the House of Commons Treasury committee. “The risks are on the upside.” Also speaking before MPs was Dave Ramsden, the Bank’s deputy governor for markets and banking, who said business investment had flatlined since Brexit, holding back the productive capacity of the UK economy. “We therefore think the speed limit the economy can grow at without triggering inflation is lower,” he said.