Bank of England Governor Andrew Bailey speaking to the UK Parliament’s Treasury Select Committee TSC, He said that in all BoE meetings the rate hike is on the table. He added that, given the extremely high uncertainty in the economy, it would be dangerous to give specific guidance on exactly when these increases could come.
Regarding his decision at the BoE’s most recent meeting not to vote for an immediate end to the bank’s QE program, Bailey said he did not want to raise questions about whether the BoE would complete future QE programs.
MPC member Michael Saunders, also speaking to the TSC, noted that the risk of taking too long to raise rates is that they might have to go up faster and higher.
Finally, Huw Pill, a member of the BoE MPC, said that while medium to long-term inflation expectations remain anchored, if those expectations were to change, it would be key that “we face that challenge”.
The GBP / USD pair had very little reaction to the testimony of the members of the Bank of England before the parliament yet and the pair, for now, remains capped below 1.3450.