Bailey Cites Uncertainty in Gulf and Lower-Than-Expected Inflation

Bank of England (BoE) Governor Andrew Bailey spoke about the decision to maintain the bank rate at 3.75% in a 6-3 vote split following the July monetary policy meeting.

Bailey noted that UK market curve is entirely consistent with their reading of the economy, but emphasized that they should attach a lower than usual probability to BoE's central scenario.

He also mentioned that the situation in the Gulf feels as uncertain as it did a few months ago.

The encouraging sign for Bailey was that CPI (Consumer Price Index) is below where they thought it would be, which suggests that economic growth may be slowing down.