BoE governor Bailey: Rates will likely stay higher for longer

ECB conference speech

Andrew Bailey, governor of the Bank of England, has warned the path of interest rates is likely to differ from the path expected by the market.

Speaking at a European Central Bank conference yesterday (28 June), Bailey said the continually tight labour market meant rates would likely stay high for longer than expected. "I have always been interested that markets think that the peak will be short lived in a world [where] we are dealing with more persistent inflation," he said. BoE chief economist Pill defends inflation forecast record "It is core [inflation] that is the issue, it is much stickier," he added, referring to inflation which excludes volatile factors such as energy, food, alcohol and tobacco, and rose in May fro...