The Guardian reported that Bank of England's (BoE) governor Andrew Bailey said in an interview that the British central bank could become a “bit more aggressive” in policy easing if inflation remains subdued.
The BoE's chief’s Guardian interview prompted a revision of markets' rate bets. According to Bloomberg, markets fully priced in a 25-basis-point rate decrease at the UK central bank's November meeting and see a 70% probability of another move in December, compared to nearly 40% the day before.
Bailey also said that he was watching developments in the Middle East "extremely closely", noting that there were limits to what could be done to avoid the increase in the crude oil prices if things “got really bad”.
The BoE's governor also admitted the resilience of the domestic economy despite recent challenges, and heightened the need for capital investment, particularly in infrastructure, to address issues like an ageing population, defence spending, and climate change.