Andrew Bailey has warned markets against underestimating the persistence of UK inflation and stressed he expected the Bank of England would keep interest rates high for an extended period of time.
The BoE governor told MPs on Tuesday that investors were putting “too much weight” on recent data that showed a sharp fall in headline inflation in October.
Swaps markets are pricing in that the BoE will make its first interest rate cut from 5.25 per cent in June next year, and expect 0.7 percentage points of cuts during 2024.
Read More : BOE Governor Advises Markets Against Quick Expectations of Inflation Reduction