Bank of England Governor notes inflation would meet target without geopolitical disruptions, signaling cautious policy ahead.
Bank of England Governor Andrew Bailey stated inflation would align with the target if not for the war’s impact. The remarks underscore external factors delaying monetary policy normalization.
Market pricing currently assigns a 50% probability of a November rate hike. Bailey suggested that if oil prices remain stable, war-related inflation effects could dissipate by Q4, allowing clearer policy direction.
The comments reflect a balancing act between inflation control and economic output preservation, with markets closely monitoring energy price trends.