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MNI BRIEF: BOE Left Option Open For Bigger Aug Hike - Bailey

(MNI) London

The Bank of England will take policy decisions meeting by meeting and a 50 bps hike in August is not a forgone conclusion, although clearly is could be an option if the conditions warrant it, Bank of England Governor Andrew Bailey said Wednesday.

Bailey said the Monetary Policy Committee had been very careful in the words it used in the June policy statement and left the option of a bigger than 25 bps hike on the table. But Bailey clarified that it was only an option and other outcomes were also in play.

Bailey said the move to a bigger hike would be needed if inflationary pressures became more persistent, if second round effects took hold, but, he noted, we are not there yet with a month still to go to the next meeting.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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