Bank of England governor Andrew Bailey sought to clarify his position on workers demanding higher wages today (February 23), after earlier comments he made were widely criticised.

Firms need to limit the extent of their price rises as well as workers exercising “restraint” over their pay demands if the UK is to avoid more persistent high inflation, he said.

“There is very clearly an upside risk [to inflation] now, and that risk comes from the second-round effects,” Bailey said during a hearing