BOE Governor Andrew Bailey caricature 2

It doesn't get much more direct than this:

"if we were to follow the market rate conditioning path, we think inflation would be above target for much of the next three years."

I would advise some humility after the past three years of monetary policy foibles but Bailey is far too arrogant to be humble. For what it's worth, the market is pricing in 105 bps in easing this year in the UK.

  • Good news on economy has taken away need for warning that rates could rise again
  • We will not maintain policy stance any longer than we need to
  • Don't agree with the idea that we've done easy bit on bringing wage growth down
  • We don't need to see inflation back at target to cut rates, we need to see evidence that it's heading there