BOE: Banking crisis “tests” institutional structures − Andrew Bailey

The Governor of the Bank of England, Andrew Baileyearlier said in a speech Wednesday at the Institute of International Finance in Washington, where he attends meetings of the International Monetary Fund, that he did not believe “we are dealing with a systemic banking crisis.”

Featured Statements

We watch QT very closely, we don’t want it to have a detrimental impact on the markets.

We don’t see any worrying signs in the markets due to QT.

I see no indication of a repeat of the 2007-08 crisis.

We should not “delay” the rate decision because of the crisis.

It will take into account the financial conditions.

“I don’t see evidence that we have what I would call … the makings of a 2007/8 financial crisis on our hands. I really don’t see it. I really don’t see it,” Bailey said when asked about recent instability in the banking sector. .

“The system is in much stronger condition,” he added.

GBP/USD Update

The British pound rose towards $1.25 against the US dollar, nearing the 10-month high of $1.2525 hit on April 4.

Sterling is being boosted by weaker-than-expected US Consumer Price Index data, which cemented sentiment that the Federal Reserve is likely to pause its rate hike cycle soon.