BoE hawk Michael Saunders said over the weekend, “markets have priced in over the last few months an earlier rise in Bank Rate than previously and I think that’s appropriate.”
Saunders noted that markets have fully priced in a February hike, and half priced a December hike. “I’m not trying to give a commentary on exactly which one, but I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously,” he said.
Separately, BoE Governor Andrew Bailey warned in an interview that inflation is “going to go higher, I’m afraid”. “We have got some very big and unwanted price changes,” he said, as the pandemic altered consumer behavior.
