Bailey speech: Optimistic UK interest rates will fall further

Bank of England (BoE) Governor Andrew Bailey said on Thursday that he is optimistic that interest rates in the UK will fall but added that they need more evidence, per Reuters.

Bailey further explained that they need to see residual inflation pressures disappearing and that it's imperative that UK improved its current potential growth of 1.2%-1.3%. He also noted that the UK government will take the right decision on treatment of QT in fiscal rules.

Market reaction

These comments failed to trigger a noticeable reaction in GBP/USD. At the time of press, the pair was up 0.3% on the day at 1.3250.