Newsquawk Logo

BoE Governor Bailey says he still thinks markets are getting ahead of themselves by pricing in rate hikes, according to a Reuters interview

Bailey's remarks imply a dovish stance from the BoE, suggesting that while rate hikes are a consideration, they prioritize controlling inflation with minimal economic disruption.

Newsquawk StaffPublished On the live feed at — 8 more headlines followed before this page went public
Newsquawk headlinesUTC

US Retail Sales YoY (Feb) Y/Y 3.7% vs. Exp. 2.9% (Prev. 3.2%)

Petrobras (PBR) raises its jet fuel prices by approximately 55%

BoE Governor Bailey says he still thinks markets are getting ahead of themselves by pricing in rate hikes, according to a Reuters interview

US PRE-MARKET MOVERS: XLE, NKE, RH, CALM, NCNO, TH, BAC, UNH, RIVN

US PRE-MARKET MOVERS: XLE, NKE, RH, CALM, NCNO, TH, BAC, UNH, RIVN

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Try the platform free
Free. No signup, no card.
  • We will have to act if appropriate but tackling source of energy price shock is most important
  • If we have prolonged high energy prices and supply disruption, it will strain many countries “quite seriously”
  • I’m very clear we need to return inflation to target in way that causes least damage to growth and jobs
  • We look at inflation expectations very carefully, but short-run often follows headline inflation
  • Businesses I speak to say they have “a real lack of pricing power”
  • UK growth is below potential, labour market softening
  • MPC may debate case for a precautionary rate rise, but need to judge that in context of remit and how to return inflation to target
  • Gilt market moves “orderly but stretched”, we’re watching it hourly
  • Need to watch out for investor loss of confidence in private credit
Context

His emphasis on energy prices and growth indicates a cautious approach, signaling that markets could be overestimating the likelihood of immediate rate increases. This could influence GBP and gilts, potentially leading to recalibrations in both forex and fixed-income markets as traders assess the implications for UK monetary policy.

Related headlines

The whole workspace, free to try.

Try it free
Newsquawk Logo

© 2026 Newsquawk. All rights reserved.