“We will be watching closely to see if further increases to interest rates are needed,” Bank of England (BoE) Governor Andrew Bailey said following the surprise no-rate change decision in the September meeting.

This comment is from the inflation letter sent by Governor Bailey to the UK Finance Minister Jeremy Hunt. The inflation letter was published alongside the September monetary policy statement.

“According to Reuters' calculations, markets price in a 64% chance of the BoE raising the policy rate by 25 bps in November, down from 81% before the rate announcement. Additionally, investors now see a 55% probability that the BoE will lower the policy rate to 5% in September 2024,” FXStreet’s Analyst, Eren Sengezer, noted.

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