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Bank of England interest rate expectations (14/03/22)

by Shafiq Shabir
Head of Electronic Trading, Intertrader

Thursday’s interest rate decision takes on new meaning with this week also marking two years since Andrew Bailey took the top job on Threadneedle Street.

Markets have priced in a third back-to-back rate rise at Thursday’s meeting as the UK economy faces inflationary pressures and rising petrol and gas prices amid the ongoing Russia-Ukraine conflict. However, most eyes will be on the Governor after a rocky few months at the Bank of England.

Bailey is unlikely to be on the receiving end of a cake ‘ambush’ to celebrate his two-year anniversary in the role with the UK grappling with the worst cost of living crisis in recent memory. However, there will be a further opportunity on Thursday to show the markets and the British people that the Bank has a grip on the nation’s monetary policy, and can take decisive action to rein in runaway inflation.

Looking at Bailey’s report card so far, after two of the most turbulent years in economic history, he remains a Marmite figure in the City. Some label him an ‘unreliable boyfriend’ or suggest he was ‘asleep at the wheel’ on inflation last year. More friendly voices argue that, in Covid-19 and the Russia-Ukraine conflict, he has and continues to face a unique set of challenges echoing the pressures that predecessors like Mervyn King felt during periods of global crisis.

Published: 14 March 2022

You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.

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