<span>Story: Bank of England Governor Andrew Bailey says markets are still ahead of themselves in pricing in rate hikes</span><span>:: London, UK / April 1, 2026</span><span>“I made it very clear a few weeks ago. I mean, I probably used language that was more direct than usual, and I think you’re getting ahead of yourself a little bit. Now, look, what I said a few weeks ago, I haven’t really changed my position, and to be clear, was there a reasonable expectation before this all started, We may get one or two more rate cuts this year, I mean, I said that, so people’s expectations are reasonable. Yes, A, obviously the volatility, I mean, we had a big change in that expectation in the morning and afternoon, but frankly, sitting here today, obviously it’s still pricing us in a rate hike, and I think that’s what the market has to make, but I think they’re a little bit ahead of themselves, I think. “We will have to sit down again at the end of the month and evaluate as we do in every meeting, but I was clear two weeks ago that I have not changed my position. We will have the next meeting at the end of the month and reassess that position, but I will not go beyond that.” </span><span>Bailey told Reuters in an interview at the central bank’s London headquarters that the central bank needed to focus clearly on risks to growth and employment, as well as inflation, when making its next interest rate decision.</span><span>Financial markets now expect the Bank of England to raise interest rates twice this year, having previously forecast as many as four increases, while most economists polled by Reuters expect rates to remain unchanged.</span><span>Before the crisis broke out, British inflation was expected to fall back to the 2% target, and the Bank of England had indicated that further interest rate cuts were possible. With the outbreak of the Iran war, this situation changed dramatically.</span><span>Bailey said the BoE was looking at the sharp rise in inflation expectations “very cautiously” but the message he was getting from businesses was that their ability to raise prices was limited. </span>
