BOE will gradually quantitative tightening

In the Asian session on Tuesday (May 23), GBP/USD rose to 1.2422, an increase of 0.08%. Bank of England Governor Bailey said that he has not yet seen the market react to the central bank‘s announcement on quantitative tightening.

Bailey said quantitative tightening will be gradual and predictable, and will not act blindly; he does not think the Bank of England’s balance sheet will return to pre-financial crisis levels. Growth in average British wages slowed again in April after an unexpected surge in March, analysts said. With the BoE giving a lot of weight to this data, as well as the next CPI data, the chances of a pause in rate hikes at the June meeting have increased slightly.