Bailey: Rate Cut Pace Raises Eyebrows

Bank of England Governor Andrew Bailey recently spoke to the Treasury Select Committee, admitting interest rates will likely keep falling. But there's a catch. The speed of these cuts? That's becoming a bit of a question mark. Bailey noted inflation risks are climbing, though he seems more worried than his colleagues about potential job losses.

What He Actually Said

Inflation risks? They're up.

I worry more about job losses than those MPC folks who wanted rates unchanged.

UK inflation spikes aren't really connected to fundamental economic issues here.

Interest rates will probably keep heading down. That's my take.

It's not entirely clear how quickly we can cut rates now.

Markets get what I'm saying. Their pricing shows it.

The upside inflation risks? Supply-side stuff.

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