BoE's Bailey: I expect quite a drop in inflation

Bank of England (BoE) Governor Andrew Bailey commented on his inflation outlook fore the UK economy while outlining how the BoE plans to wind down its government bond holdings to a more manageable level by the second half of 2025.

According to reporting by Reuters, the BoE plans to sell off 1.11 trillion USD worth of government bonds on the UK central bank's balance sheet by the midpoint of next year.

Key comments

Bailey thinks the next move on rates will be a cut.

The question is how long we maintain this level of monetary policy restriction.

I expect quite a drop in April inflation data.

Bailey will consider the IMF's recommendation of more MPC press conferences.