Bank of England (BoE) Governor Andrew Bailey explains the decision to lower the policy rate by 25 basis points to 5% in August and responds to questions from the press.

Key takeaways

"Possible UK's natural rate of unemployment may have risen in recent years."

"We give some weight to alternative less benign inflation persistence scenario."

"MPC continues to remain highly alert to risks of inflation persistence."

"BoE goes meeting to meeting, making judgement based on evidence."

"BoE takes the lead from measures of private sector pay."

"Public sector pay does have an impact on demand."

"We do not have the full story, do not know how public sector pay rise will be funded."

"Will give no view on path of rates."