Bailey Speech Preview: BoE Governor Q&A session decisive for Pound Sterling

• Andrew Bailey press conference after BoE rate decision could have a big effect on GBP.
• Bank of England widely expected to trigger 25 bps hike, hints on future monetary policy decisions more meaningful for the market. 

Andrew Bailey, Governor of the Bank of England, will speak in a press conference 30 minutes after the BoE interest rate decision is released on Thursday. Bailey is scheduled to speak at 11:30 GMT. His remarks will carry big weight for the Pound Sterling once the market has digested the outcome of the rate decision, including how many Monetary Policy Committee (MPC) members voted for a rate hike or a pause, and the MPC statement.

Andrew Bailey press conference

Bailey and the Bank of England are widely expected to decide to raise interest rates by 25 basis points. Their vocabulary when discussing inflation pressures, still way too high as the UK Consumer Price Index (CPI) came above 10% annually in the last release, will shift market expectations for future monetary policy decisions, thus impacting the Pound Sterling valuation. 

According to Matías Salord, Senior Analyst at FXStreet, high expectations from the market might mean that a surprise on the dovish side could be on the cards: “The expected hawkish tone should strengthen the currency. However, some of this is already factored into the market, so if the Bank of England (BoE) adopts a more dovish stance, the Pound could face downward pressure.”