David McNamara: Bank of England’s muddled messaging continues

BoE governor Andrew Bailey has pivoted from cautioning against cutting interest rates too fast or by too much to saying only weeks later the bank could be 'a bit more aggressive' in cutting interest rates

Bank of England governor Andrew Bailey: His comments add further uncertainty to the near-term outlook for UK rates and sterling.

Following relatively cautious guidance just two weeks ago, Bank of England (BoE) Governor Andrew Bailey’s recent press comments have weighed on sterling and drove a softening in near-term UK rate expectations. 

In an interview with the Guardian last week, Bailey said the bank could be “a bit more aggressive” in cutting interest rates provided the news on inflation continued to be good. This represents something of a volte-face from his remarks following the BoE meeting on September 19.