Bloomberg Talks BOE Governor Andrew Bailey Talks Farage Pressure, Holding Rates
Nov 7, 2025
Andrew Bailey, Governor of the Bank of England, discusses the current state of UK monetary policy amid pressures from public figures like Nigel Farage. He elaborates on his decision to hold interest rates at 4% and the factors influencing future monetary decisions. Bailey also explores the implications of artificial intelligence on productivity, expressing caution about market valuations. Additionally, he addresses concerns regarding private credit risks and emphasizes his commitment to completing his term despite external pressures.
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Data Will Decide December's Move
- Andrew Bailey felt August's risks tilted toward persistent inflation but newer data left him more balanced on December decisions.
- He said two months of incoming inflation and labour data will be crucial to sway policy direction.
Terminal Rate Is Highly Uncertain
- Bailey described large uncertainty around the terminal interest rate and emphasized wide error bands on estimates.
- He judged current policy as restrictive and likely past peak restriction but still constraining the economy.
Slow Cuts As You Approach Neutral
- Bailey said nearer the neutral rate policymakers should slow rate changes to 'land' policy smoothly.
- He implied pause lengths will depend on evolving shocks and economic conditions.