Bank of England's Bailey says inflation would be at target if not for the war
From the original
BOE seeks to hit inflation target without damaging output Market pricing puts the odds of a hike in November at roughly 50%. If oil stays down here the effects of the war should be unwound quickly so we will see where inflation lands by Q4. This article was written by Adam Button
Related speeches
4 itemsBOE's Bailey: The inflation overshoot is entirely due to events in the Persian Gulf
ICYMI: BoE's Bailey says won't rush to raise rates on oil-driven inflation spike
BOE governor Bailey says monetary policy cannot stop energy price shock on inflation
The desk interprets BOE Governor Andrew Bailey's recent comments as a clear signal that the central bank is navigating a complex landscape shaped by rising energy prices due to geopolitical tensions. Per the full note [source], Bailey emphasized that monetary policy alone cannot mitigate the inflationary pressures stemming from energy shocks, particularly as the Middle East conflict continues. This suggests a cautious approach to interest rate adjustments, with the potential for a hike if energy prices remain elevated. Current market sentiment reflects this uncertainty, as traders await clearer signals from the BOE regarding its policy direction amidst ongoing volatility in energy markets.