BoE Governor Says Market Curve Reflects Investors' Rising Concerns

Bank of England Governor Andrew Bailey explained to lawmakers that investors are pricing in additional tightening in policy due to concerns about further energy price increases.

Bailey stated that when analyzing market curves, he found a 'risk premium' included by investors. This means they're anticipating even higher interest rates beyond what's expected from the Bank of England alone.

The governor emphasized that a rate hike is not a certainty, and it depends on developments in the economy.