Bank of England’s Bailey says markets still ahead of themselves in pricing rate hikes

Bank of England Governor Andrew Bailey said on Wednesday that markets were still getting ahead of themselves by pricing in interest rate hikes by the central bank in response to the hit to the British economy from the Iran war. 

Why it matters

 Financial markets are currently pricing in two rate hikes by the BoE this year – and have previously priced in as many as four – while most economists polled by Reuters expect rates to stay on hold.