BoE Governor Bailey says BoE is facing a very different context to 2022; rates are high, demand is relatively soft, there is no covid effect. Cautions against strong conclusions about BoE rate hikes

The BoE Governor's remarks signal a dovish tone, emphasizing that the current economic conditions differ significantly from 2022, with high rates and subdued demand. This caution against premature assumptions of further rate hikes suggests that market expectations may need recalibration, potentially impacting GBP and fixed income markets as traders reassess rate path probabilities.