Andrew Bailey

The Bank of England offered some relief yesterday by overhauling its bond sales.

Governor Andrew Bailey also warned that high energy prices could make the inflation outlook worse.

It's still early days, so I'm not going to, you know, give you any firm judgment as what's gonna happen.

So far, that feed-through has been quite subdued, but it is early days.

Now, unfortunately, the longer these high energy prices go on, the more difficult this becomes, and we flagged this very clearly today.

So that was Andrew Bailey speaking there.

Well, the timing matters also because market rates over the next fortnight will help to determine the borrowing cost assumptions that are then used for the October budget.

Economists estimate that Chancellor John Healy may already need to find ten billion pounds through spending cuts or tax rises to stabilize the public finances.

The Bank of England did offer some relief yesterday, though, by overhauling its bond sales, quantitative tightening.

Now, Governor Andrew Bailey has also warned that high energy prices could make the inflation outlook worse.

It's still early days, so I'm not going to, you know, give you any firm judgment as what's gonna happen.

So far, that feed-through has been quite subdued, but it is early days.

Now, unfortunately, the longer these high energy prices go on, the more difficult this becomes, and we've flagged this very clearly today.

Andrew Bailey speaking there.

The timing matters because market rates over the next fortnight will help to determine the borrowing cost assumptions that are used for the budget in October.

Economists estimate that Chancellor John Healey may already need to find 10 billion pounds through spending cuts or tax rises to stabilize the public finances, and traders are still pricing about 100 basis points of interest rate hikes for the Bank of England over the next year.

The Bank of England offered some relief yesterday by overhauling its bond sales.

Governor Andrew Bailey also warns that high energy prices could make the inflation outlook worse.

It's still early days, so I'm not going to, you know, give you any firm judgment as what's gonna happen.

So far, that feed-through has been quite subdued, but it is early days.

Now, unfortunately, the longer these high energy prices go on, the more difficult this becomes, and we've flagged this very clearly today.

Andrew Bailey speaking there.

The timing matters because market rates over the next fortnight will help determine the borrowing cost assumptions used for the October budget.

Economists estimate Chancellor John Healey may already need to find £10 billion through spending cuts or tax rises to stabilize the public finances.

The Bank of England offered some relief yesterday by overhauling its bond sales.

Governor Andrew Bailey also warned that high energy prices could make the inflation outlook worse.

It's still early days, so I'm not going to, you know, give you any firm judgment as what's gonna happen.

So far, that feed through has been quite subdued, but it is early days.

Now, unfortunately, the longer these high energy prices go on, the more difficult this becomes, and we've flagged this very clearly today.

Andrew Bailey speaking there.

The timing matters because market rates over the next fortnight will help determine the borrowing cost assumptions used for the October budget.

Economists estimate Chancellor John Healey may have, may already need to find 10 billion pounds through spending cuts or tax rises to stabilize the public finances.

The Bank of England offered some relief yesterday by overhauling its bond sales.

Governor Andrew Bailey also warned that high energy prices could make the inflation outlook worse.

It's still early days, so I'm not going to, you know, give you any firm judgment as what's gonna happen.

So far, that feed-through has been quite subdued, but it is early days.

Now, unfortunately, the longer these high energy prices go on, the more difficult this becomes, and we've flagged this very clearly today.

So that was Andrew Bailey speaking there.

Well, the timing matters also because market rates over the next fortnight will help to determine the borrowing cost assumptions that are then used for the October budget.

Economists estimate that Chancellor John Healey may already need to find 10 billion pounds through spending cuts or tax rises to stabilize the public finances.

They're like, we're not raising them today, but we're going to raise them in the future.

And in fact, I wanted to play you a video of Andrew Bailey talking about that.

Anyway, those are the five facts.

Who have I kept waiting this morning? I'm so sorry.

And all of that is weighing on the budget.

So since we last did this podcast, we've had Andrew Bailey, the governor of the Bank of England, come out and say interest rates are coming.

Traders are helpfully pricing in for interest rate rises before kind of mid next year.

So some huge interest rate rises, rising bills.

Lots of different numbers, uh, for the bank to factor in.

Here's Andrew Bailey speaking after the bank made that decision to hold rates.

Well, the important thing is that we stay very focused on the impact of energy prices on inflation across the economy, and that's what we will do.

So it's early days yet, but so far we've seen quite a subdued pass-through.

Thank you for that, Ben.

Keep your thoughts coming, 85058.

Um, Micah, the, the governor, uh, of the Bank of England, Andrew Bailey, suggested rate rises could be on the horizon.

In fact, I think three, um, voted in favor of, of hiking rates to 4% and six voted to, to keep it where it is.

The Bank of England said the risk of elevated energy costs feeding into domestic inflation had increased, even though there was still limited direct evidence of second-round effects.

Governor Andrew Bailey said the longer this volatility persists, the bigger its impact on inflation, and the more likely the bank would need to raise bank rate to ensure inflation falls back to its two percent target.

In our view, the materially more hawkish message suggests the bar for tightening has fallen.

We now expect the Bank of England to raise rates by twenty-five basis points in November and again in February twenty twenty-seven before energy-driven inflation pressures begin to subside.