MNI BRIEF: BOE Bailey: 50bps Hike On The Table, Not Locked In

A 50 basis point rate hike would be "on the table" at the Bank of England's August Monetary Policy Committee' meeting but it was not an inevitable outcome, Bank of England Governor Andrew Bailey said Tuesday .

In his annual Mansion House speech he also said that gilt sales, which could start in September, would, along with redemptions amount to more than GBP50bn in the first year. He said that they were also looking at a reduction in the stock of gilts held by the Bank's Asset Purchase Facility of "something in the region of £50‐100bn in the first year," in line with market expectations.

Bailey said that the MPC had said it could act forcefully and "in simple terms this means that a 50 basis point increase will be among the choices on the table when we next meet."