In an interview with BBC Radio 4, he stressed he is currently "more positive" about the recovery from the coronavirus crisis, "but with a large dose of caution."
Inflation is likely to climb towards a 2.0 percent target in the next few months, though it is still unclear whether it will manage to sustain the growth, the BoE's head explained.
Bailey described last week, the economic outlook as "positive," but warned that the "diagnosis" can be taken only "with large doses of cautionary realism."
He reiterated BoE's dedication to using its "full toolbox" in order to mitigate the negative impact of the crisis, praising the work of the central bank's Monetary Policy Committee.