Fed's Bailey speaking to Bloomberg it says:
- We are approaching the point when we should be able to let level of rates rest
- We have not yet seen evidence that allows us to be sure rates can stay on hold
The Bank of England raised rates to 4.5% from 4.25% today.
- Hike marks the 12th consecutive increase
- Bank Rate at highest level since 2008
- Bailey said BoE will "stay the course" on inflation
- Growth forecast received biggest upgrade since 1997
- BoE no longer predicts a recession
- Inflation expected to fall more slowly than previously anticipated, mainly due to persistent food price increases
- Policymakers voted 7-2 for May's increase, in line with economists' expectations
- Investors pricing in a peak of almost 5% by autumn
- BoE predicts inflation will not return to its 2% target until early 2025