BoE's Bailey Notes Subdued Inflation Pressures as Economists Forecast November Rate Hike

Bank of England Governor Andrew Bailey stated that second-round inflation effects from high energy costs remain subdued so far, keeping policy options open ahead of the November 5 meeting. Speaking in Bangkok, Bailey called August's 3.1% inflation print frustrating and above the 2.0% target, while noting businesses are leaning toward cost-cutting rather than passing expenses to consumers. Despite Bailey offering no explicit voting signal, 54 out of 63 economists surveyed by Reuters expect the central bank to raise the Bank Rate from 3.75% to 4.00% next month, bolstered by August GDP expanding 0.1%.