Bailey Warns Market Outlook Too Uncertain for Rate Hike Bets

Bank of England Governor Andrew Bailey expressed uncertainty about market expectations for interest rate hikes. When asked if markets were correct to price in almost four interest rate hikes over the next year, Bailey said the situation is too unpredictable.

Bailey emphasized that his officials had not discussed the prospect of raising interest rates four times during their discussions. He pointed out that markets have a responsibility to form their own views, but added that he would say the current situation is 'too unpredictable at the moment.'

The Bank of England left interest rates on hold but warned of mounting inflation pressure. Bailey noted that conditions in the gilt market had not factored into its announcement.