Live Updates > Live Update Details
2026-09-17 21:34:12
[Bank of England Governor Bailey: Outlook Unpredictable, Four Rate Hikes Not Discussed] ⑴ Bank of England Governor Bailey stated that when asked whether the market's pricing in nearly four rate hikes over the next year was correct, the outlook was too unpredictable, and officials had not discussed this scenario. ⑵ Bailey said that there was extensive discussion at this meeting, but the prospect of four rate hikes was not discussed. ⑶ He stated that the market must form its own opinion, but the current situation is too unpredictable. ⑷ Bailey has sometimes commented on market interest rate expectations, for example, in April he said that the market pricing in multiple rate hikes was "too hasty," and in July he emphasized that a rate hike later this year was far from certain. ⑸ The Bank of England announced a new plan to reduce its holdings of government bonds earlier on Thursday, completely halting the sale of long-term bonds and suspending active sales for the next six months. ⑹ Bailey stated that the conditions in the UK government bond market, including the 30-year yield hitting its highest level since 1998 this week, were not taken into account in this announcement. ⑺ He emphasized that the relevant work was planned before the outbreak of the Middle East conflict and was not a reaction to market conditions. (8) Bailey also said that the inflation risk from the war in Iran is still in its early stages and has been quite mild so far, but the longer the conflict continues, the more difficult it will be to make interest rate decisions.
