BoE's Bailey: Necessary but not sufficient conditions for rate rise have been met

Bank of England (BoE) Governor Andrew Bailey is testifying before parliament's Treasury Committee on Wednesday.

Key quotes

"We are seeing some flattening-out of the rate of recovery across quite a broad range of indicators."

"Delta variant is having a less economic impact than previous waves of covid cases but it's hard to forecast."

"There are risks on both sides to inflation returning to target over the medium term."

"Market curve does point to some increase in interest rates."

"We think impact of QE comes from the announcement of stock of purchases, not the flow of purchases."

"If we stopped doing QE, that we would in effect be tightening policy."

"BoE's guidance is a necessary but not a sufficient condition for raising interest rates."

"MPC members in august were split 4-4 as to whether minimum necessary conditions were met to raise interest rates."

"Necessary but not sufficient conditions for a rate rise have been met."

The GBP/USD pair erased its daily gains following these comments and was last seen trading flat on the day at 1.3780.