[Bank of England Governor Bailey: May Tolerate Inflation to Support UK Economy] Reported by Golden Finance, May 29 — Bank of England Governor Bailey stated that in order to support the UK's weak economy, the central bank may tolerate inflation temporarily exceeding the 2% target level, provided there is no occurrence of 'second-round price effects.' Bailey noted that the Bank of England has tightened monetary conditions by eliminating market expectations of rate cuts, thereby impacting the economy. Bailey said: 'Given the weak performance of the real economy and the uncertainty surrounding the scale and duration of the shock, tolerating inflation temporarily above the target level to provide some support to the real economy is an appropriate way to address this trade-off.' He added: 'However, once signs of second-round effects emerge, this tolerance will diminish accordingly.'