Bank Of England's Bailey Says Rising Market Rates Reflect Better Economic Outlook

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Bank of England Governor Andrew Bailey said Monday an increase in the market interest rates mirror the improvement in the economic outlook.

“We have seen some increase in interest rates over the last month or so, as have other countries,” Bailey said in an interview to BBC Radio 4.

“My assessment so far is that is consistent…with the change in the economic outlook.”

At its Thursday meeting, the Bank of England is expected to maintain its key interest rate at record low 0.10 percent and its bond purchases at GBP 895 billion.

Meanwhile, policymakers in rest of Europe and Asia have expressed concern that the rising yields could derail the economic recovery after the Covid-19 induced slump.

Last week, European Central Bank President warned that an increase in market interest rates at this juncture was “undesirable” as policymakers vowed to front load the bank’s pandemic era bond purchases.

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