Bailey speech: 50 bps hike will be on table at next meeting

Eren Sengezer FXStreet

Bank of England (BOE) Governor Andrew Bailey said on Tuesday that a 50 basis points rate increase will be among the choices at the next policy meeting, as reported by Reuters.

Key takeaways

"Will publish more details on gilt sales in August."

"We have the option to commence a sales programme shortly after a confirmatory vote by the MPC, which could be as early as at our September meeting."

"50 bps hike is not locked in and anyone who predicts that is doing so based on their own view."

"We do not pre-announce bank rate decisions."

"If we see signs of greater persistence of inflation, and price and wage setting would be such signs, we will have to act forcefully."

"We recognise a trade-off in a situation of high inflation and weakening growth."

"We can already see the economy slowing."

"I would urge caution in interpreting the May GDP number as strong."

Market reaction

GBP/USD extended its daily rally and touched its highest level in more than 10 days at 1.2045. As of writing, the pair was up 0.67% on a daily basis at 1.2035.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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