Bailey Q&A: We need to see evidence of services inflation easing back

Further remarks by Bailey in his press conference

We need to see evidence of the most persistent elements of inflation, services inflation in particular, easing back
In terms of policy-setting, we need to look past short-term trends
Services inflation might be much stickier in the months ahead
Hopes lower inflation will influence expectations in the real economy
But we need to see more evidence of that
Inflation moving back to around 2.7% is not an acceptable level as a resting point
Needing to get inflation back to 2% mark is the best thing for households
We will not maintain policy stance any longer than we need to

Following his remarks, the odds of a May rate cut have dwindled to ~45% now with traders even paring back odds of a June rate cut. The latter now has odds of ~96% after having been fully priced in before the BOE decision.