Bank of England Governor Andrew Bailey to address inflation and rate outlook in Bangkok

Bank of England Governor Andrew Bailey is set to speak at the Institute of International Finance annual membership meeting in Bangkok. His remarks come as financial markets increasingly anticipate a potential interest rate hike at the Monetary Policy Committee’s November 5 meeting.

Bailey has noted that while inflation remains above the Bank’s 2% target—reaching 3.1% in August—the second-round effects appear subdued. He observed that businesses are currently focusing on cost-cutting measures rather than significant wage and price-setting shifts, and there is limited evidence of high energy costs driving broader pricing structures.

Market participants are closely watching for signals regarding the November decision. While some economists expect a rate increase, any emphasis from Bailey on a softening labor market or a more patient approach could influence expectations for the pound and gilt yields. The Bank’s stance remains sensitive to energy price fluctuations, particularly oil and gas costs.