Bailey Dismisses Recession Fears as BoE Remains Divided

Andrew Bailey, Governor of the Bank of England (BoE), testified before the UK Treasury Select Committee and stated that he does not think the UK is on the verge of a recession. He cited solid data to support this view, but acknowledged that the jobs market is softening due to a decline in the hiring rate.

Other BoE members expressed differing views, with some arguing that keeping interest rates at a 'moderately restrictive level' provides insurance against potential economic downturns.

The split among policymakers has not led to expectations of an upcoming rate hike, with markets pricing in an 86% chance of holding the Bank Rate after next week's meeting. The Federal Reserve will announce its policy decision on September 17.