How BoE's Bailey upset traders and set UK bond markets adrift

[MongiIG]

EconomyDec 15, 2021

By Tommy Wilkes and Saikat Chatterjee

LONDON (Reuters) - As the Bank of England's policy decision was announced on Nov. 4, gasps were heard on some London trading floors.

Confident that Governor Andrew Bailey and Chief Economist Huw Pill had signalled interest rates would rise to fight inflation, many banks, hedge funds and other traders had bet on such an outcome, traders and investors said.

Instead, the British central bank kept borrowing costs unchanged - with Bailey and Pill voting against an increase.