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Bank of England Cautions on Rate Hikes Amid Inflation

4/2/2026

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Summary

Story summary

Bank of England Governor Andrew Bailey said markets overestimate rate hikes as the Iran war lifts energy prices and inflation.
He urged caution in monetary policy to protect growth and jobs.
J.P. Morgan now expects only one rate hike in June rather than two.
The next Bank of England decision will be announced on April 30.
Bailey warned inflation expectations are rising, but businesses lack pricing power amid weakness.

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Story summary

Bank of England Governor Andrew Bailey said markets overestimate rate hikes as the Iran war lifts energy prices and inflation.
He urged caution in monetary policy to protect growth and jobs.
J.P. Morgan now expects only one rate hike in June rather than two.
The next Bank of England decision will be announced on April 30.
Bailey warned inflation expectations are rising, but businesses lack pricing power amid weakness.