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Podcast: Beyond Currency
Episode: 29 June 2023 - Fed rate hikes are back in business
Description: Speaking at an event hosted by the ECB yesterday, Andrew Bailey continued the hawkish rhetoric he used when announcing the fifty-basis point increase in interest rates last week.
He told the assembled journalists that having studied the surprisingly bad May inflation report that a strong message needed to be sent to the market.
There was discussion about hiking by fifty basis points over two meetings, but, on balance, the MPC felt that a single rise would hold a more effective message.
The effect of the employment and inflation reports made it clear that if the Bank was to be considered...