BoE Governor Bailey: Interest rates approach peak level

Bank of England (BoE) Governor Andrew Bailey said that inflation in the country is expected to fall significantly by the end of this year and that current interest rates are currently “much closer to the peak of the cycle.” Bank of England (BoE) Governor Andrew Bailey answered questions from members of the Treasury Committee in the British Parliament about the outlook for the British economy and the bank’s policies. Noting that the BoE decided to increase interest for the 14th time last month, raising interest rates to 5.25 percent, Bailey conveyed that current interest rates are currently “much closer to the peak of the cycle.” Stating that it had been clearly seen in previous periods that the bank needed to increase interest rates in line with monetary policy, Bailey said, “The bank is no longer in that position.” BoE Governor Bailey said, “I can’t say we are at the peak of the cycle. Because we have a meeting ahead of us. But I think we are near the end (of this cycle) based on the current evidence on interest rates.” Bailey, who said that inflationary pressures are expected to ease in the country in the coming period, noted: “Most of the indicators are now moving as we expected them to move, signaling that the decline in inflation will continue. As I have said several times before, I think it will be quite noticeable by the end of this year.” The BoE had raised interest rates 14 times since December 2021, raising the interest rate from 0.1 percent to 5.25 percent.