BoE’s Bailey: 50 bps hike will be on table at next meeting

Bank of England Governor Andrew Bailey said on Tuesday that a 50 basis points rate increase will be among the choices at the next policy meeting, as reported by Reuters.

The GBP/USD pair extended its daily rally and touched its highest level in more than 10 days at 1.2045. As of writing, the pair was up 0.67% on a daily basis at 1.2035.

Key Quotes

“Will publish more details on gilt sales in August.”

“We have the option to commence a sales programme shortly after a confirmatory vote by the MPC, which could be as early as at our September meeting.”

“50 bps hike is not locked in and anyone who predicts that is doing so based on their own view.”

“We do not pre-announce bank rate decisions.”

“If we see signs of greater persistence of inflation, and price and wage setting would be such signs, we will have to act forcefully.”

“We recognise a trade-off in a situation of high inflation and weakening growth.”

“We can already see the economy slowing.”

“I would urge caution in interpreting the May GDP number as strong.”