The Bank of England has space to judge the broader impact of the Iran war on inflation before it considers the next interest-rate move, its Governor Andrew Bailey says. Markets at the start of 2026 had expected rate cuts this year, but in March that needed to be taken off the table due to the conflict, he told CNBC in an interview at the European Central Bank's Sintra conference. That led to investors raising bets on monetary-policy tightening, which, for instance, drove higher mortgage rates. "So we've had some tightening built into the curve which gives us some time to judge the pass-through," Bailey says. However, the bank isn't "complacent" in bringing inflation down to the 2% target slower than previously anticipated. (edward.frankl@wsj.com)
Dow Jones Newswires
Bank of England Has Time to Judge Pass-Through of Energy Prices, Bailey Says — Market Talk
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The Bank of England has space to judge the broader impact of the Iran war on inflation before it considers the next interest-rate move, its Governor Andrew Bailey says. Markets at the start of 2026 had expected rate cuts this year, but in March that needed to be taken off the table due to the confl…