BOE's Bailey: Bank rate may have to go up further but less than markets expect

• Rates on fixed-rate mortgages should not need to rise as they have done
• GDP has been weaker than expected while labor market strong
• Inflation has come in about as expected in August
• There are some signs that labor demand has started to soften
• MPC does not follow the market
• We should not increase bank rate too far

"We can't make promises about future interest rates but based on where we stand today we think the Bank Rate will have to go up by less than currently priced in financial markets," Bailey said.

Cable is having a rough day, down 211 pips to 1.1179.

Here are the BOE inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term projections: