The bank could be “a bit more aggressive” in its approach, as Andrew Bailey told the Guardian, which caused a significant shift in expectations.
He concluded, “You have to keep an eye on this thing because it could go wrong.”
Despite concerns over the possible danger to supply in the case of a confrontation between Israel and Iran, oil prices have been largely constant this week.
98% of market bets were on a 0.25 percentage point rate drop for the Bank’s meeting on November 7th, despite Mr. Bailey’s cautions. The majority also anticipated another cut in December.
Before the market opened on Thursday, a sizable portion of investors had predicted that there wouldn’t be a change in the rate until December due to sticky factors including service inflation and ongoing pressure from the economy’s rate of wage increases.
In August, the Bank issued a warning, stating that further reductions beyond the quarter-point decrease it had implemented at the time would require a data-driven strategy.
