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Bailey Says No Historical Data to Give Evidence on Policy Lags

BOE

Bailey speaks on policy transmission:

  • Have seen structural change in mortgage market since last tightening cycle: to fixed rate, from variable. As such, transmission of policy is slower. As such, have to judge that element of uncertainty when decision-making. How much tightening has come through?
  • History not a great guide given the structural change in the market. Have to look at profile of mortgages coming up for renewal.

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