BoE's Bailey: Second-round inflation effects may take longer to fade

LONDON, Aug 3 (Reuters) - Higher-than-expected wage inflation suggests that the knock-on effects from strong inflation may last longer than previously thought, Bank of England Governor Andrew Bailey said on Thursday.

"In our judgement, upside surprises on wage inflation suggests that it will take longer for second-round effects to go away than it did for them to appear in response to the sharp rise in prices of many imported goods over 2021 and 2022," he told a press conference after the BoE raised interest rates to a 15-year peak of 5.25%.