Bank of England responds to rising inflation

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Bank of England, Governor Andrew Bailey, 0.10%, Meets November 04There was no change to interest rates and the split was 7-2 in favour of not altering the current target of £875 billion in bond purchases. Saunders and Ramsden were the dissenters as would be pretty much expected from their more hawkish stances. During the August BoE meeting the bank was optimistic without prompting an initial hawkish response from markets. In this latest September meeting the Bank of England was able to prompt a hawkish response. Take a look at the drop lower in Sonia futures as markets price in higher interest rates coming.Inflation is now a worry for the BoE.They did not say as much, but the inference is clear. First of all the 3.1% print in August was marked out as the highest since November 2011. The BoE also noted that,'CPI inflation is expected to rise further in the near term, to slightly above 4% in 2021 Q4, owing largely to developments in energy and goods prices'. The phrase that cau
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