BoE´s Bailey: Banking crisis testing institutional structures

Bank of England Governor Andrew Bailey earlier said in a speech on Wednesday before the Institute of International Finance in Washington where he is attending International Monetary Fund meetings that he did not believe ´´we face a systemic banking crisis.”

The Pound rose towards $1.25 vs. the US dollar, moving closer to a ten-month high of $1.2525 touched on April 4th.

The Pound Sterling is getting a boost from the softer-than-expected US Consumer Price Index data that solidified that sentiment that the Federal Reserve will likely pause its rate hiking cycle soon.

Key Quotes:

We watch QT very carefully; we do not want it to have detrimental impact on markets.

We are not seeing any concerning signs in markets due to QT.

I do not see makings of a repeat of 2007-08 crisis.

Shouldn’t `aim off’ rates decision due to crisis.

Will take financial conditions into account.

“I do not see the evidence that we’ve got on our hands what I would call … the makings of a 2007/8 financial crisis. I really don’t see that,” Bailey said when asked about recent instability in the banking sector.

“The system is in a much more robust condition”.