Bank of England Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points at the November meeting. Key takeaways We still need to see services price inflation come down more broadly to keep CPI at 2%. Not for us to judge on merit of national insurance rise but to respond to inflation impact.
How does the Bank of England’s monetary policy influence Sterling? When inflation is above the Bank of England’s target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money.