Bank of England's Bailey speaks to lawmakers after hint of rate hike pause

February 9, 202311:19 AM UTCUpdated ago

BoE Monetary Policy Report Press Conference in London — Andrew Bailey, Governor of the Bank of England, attends the Bank of England Monetary Policy Report Press Conference, at the Bank of England, London, Britain, February 2, 2023. Yui Mok/Pool via REUTERS/

LONDON, Feb 9 (Reuters) - Bank of England Governor Andrew Bailey and other BoE officials spoke to lawmakers on Thursday, a week after the central bank raised borrowing costs for the 10th time in a row but suggested that its run of interest rate hike might be close to an end.

Below are quotes from Bailey and his colleagues in a question-and-answer session with parliament's Treasury Committee.

BAILEY ON PERSISTENCE OF INFLATION

"We are concerned about persistence (of inflation) and that's why, frankly, we raised interest rates this time... I am very uncertain particularly about price-setting and wage-setting in this country. We have got the largest upside skew in our forecasts that we have ever had on inflation."

BAILEY ON PAY DEMANDS

"What I would urge is that - particularly going forwards because we think inflation is going to fall very rapidly - that is taken into account."

"We've seen pay settlements, in particular in the private sector, are higher than consistent with the target, but not at the level of inflation."

MONETARY POLICY COMMITTEE MEMBER SILVANA TENREYRO

"In my view, yes, rates are too high right now."

"Unless there is another big development that we don't know about - and we have a massive energy shock or something that is not on the cards - then I think they fall in inflation is pretty much guaranteed."

"Where things stand right now, I would see myself considering a cut. I don't want to talk about the particular meeting."