Andrew Bailey
  • Rates on fixed-rate mortgages should not need to rise as they have done
  • GDP has been weaker than expected while labor market strong
  • Inflation has come in about as expected in August
  • There are some signs that labor demand has started to soften
  • MPC does not follow the market
  • We should not increase bank rate too far

"We can't make promises about future interest rates but based on where we stand today we think the Bank Rate will have to go up by less than currently priced in financial markets," Bailey said.

Cable is having a rough day, down 211 pips to 1.1179.

Here are the BOE inflation projections:

BOE inflation projection