Clarity not confusion: Change of guard at BoE but the same old communication error

Latest meeting surprised markets

clock • 3 min read
Sajiv Vaid at Fidelity International

Sajiv Vaid at Fidelity International

While we have a (relatively) new Bank of England (BoE) governor in Andrew Bailey, it seems the Bank is committed to making the same old policy communication errors, with the latest meeting catching the market off-guard causing gilt yields to rise and expectations for rate hikes to be brought forward.

We think the moves are unjustified, though, and have been adding duration into the portfolios on the back of this. The transparent, calm and frankly dull BoE meetings we had become accustomed to over...

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