Bailey Refuses to Play Musical Chairs as Oil Price Goes Wild
Bank of England Governor knows his rate-setters are in an extremely tricky position
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The Bank of England held interest rates at 3.75% today, but everyone knew that was going to happen so attention was more on what the rate-setters said (or didn’t say), both in person and in the latest Monetary Policy Report.
The market reaction was distinctly dovish, with traders easing back their bets on how many times rates will be hiked this year, and the yield on government debt also falling. But how dovish was the BOE really? Down in its Threadneedle Street basement, our reporters noticed lines in the rate-setters’ individual paragraphs suggesting that a couple, or more, might join the Bank’s chief economist Huw Pill in voting for a hike. Potentially as soon as June.