BoE Andrew Bailey, in an interview with Bloomberg TV, suggested that the central bank could soon hit a plateau in its cycle of rate hikes. However, he underscored the need for clear evidence before making such a call.
“We are approaching a point when we should be able to in a sense rest in terms of the level of rates,” Bailey stated. However, he was quick to caution that BoE hadn’t seen sufficient evidence yet to make that determination. “We have to be evidence driven,” he emphasized.
When queried if BoE was nearing a pause in rate increases, Bailey responded, “Well, I’m going to say I hope we are because this is the 12th consecutive increase in rates.” He reiterated, however, BoE’s dependence on tangible data, adding “we will be guided by the evidence as it comes to us.”
Bailey’s comments reflect a careful balancing act. While he hints at a potential easing in rate hikes, he firmly anchors this possibility to empirical data, thereby preventing premature conclusions. He also clarified that BOE is not “giving a direction one way or the other” on rates and that their future moves would be “shaped by the evidence.”
