Bailey speech: Putin is putting the UK into recession, not the BOE MPC

Bank of England (BOE) Governor Andrew Bailey is testifying alongside several Monetary Policy Committee (MPC) members on inflation and the economic outlook before Parliament's Treasury Committee on Wednesday.

Key quotes

Putin is putting the UK into recession, not the BOE MPC

There is a very real risk that high headline inflation feeds into price-setting persistence.

Short-run inflation expectations have risen substantially, not necessarily surprising.

Must be very alert to upward movement in medium- and long-term inflation expectations.

Nothing we say today should be taken as a clue to what we will do on rates next week.

UK growth has been 'grindingly slow' since initial recovery from covid shock.

Market reaction

GBP/USD is keeping its range around 1.1485, as Governor Bailey testifies. The spot is down 0.23% on the day, at the press time.

A chance of 75 bps BOE rate hike next week falls to 55% as MPC members speak vs. 71% earlier on Wednesday, according to the OIS market pricing.

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