BoE's Bailey says stability is important amid crucial by-election

June 18 (Reuters) - Bank of England Governor Andrew Bailey said on Thursday that stability was important, when asked about a by-election which could return Greater Manchester Mayor Andy Burnham to parliament and pave the way for him to challenge Prime Minister Keir Starmer.

Bailey told broadcasters that he never involved himself in politics but added: "Stability is important, I think everybody recognises that."

"This is not one part of the political spectrum versus another. I think everybody recognises the importance of stability," Bailey said after the BoE left interest rates on hold.

In earlier policy minutes explaining his vote to leave interest rates on hold, Bailey said market pricing showed an upward slope in British government borrowing costs over time.

That reflected more "risk premia" than interest rate expectations alone, he said, without elaborating on whether he meant British political risks or other factors such as global inflation dangers.

(Reporting by Andy Bruce; editing by David Milliken)