BOE’s Bailey’s speech preview: The economic outlook
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BOE’s Bailey’s speech preview: The economic outlook

The Bank of England (BOE) Governor Andrew Bailey is scheduled to speak at a webinar hosted by the Resolution Foundation at 1000 GMT on Monday, with the speech titled ‘The economic outlook.”

His speech is likely to be followed by an interactive Q&A session from leading economic Helene Rey, with Bailey’s response closely eyed.

Against the backdrop of the coronavirus pandemic, the path of the UK’s economy remains highly uncertain, Governor Bailey could say while addressing key concerns such as – what will the lasting impacts of the pandemic on the economy be? The role of monetary policy in supporting a strong and sustainable recovery?

Recall that on February 4, The BOE’s Monetary Policy Committee (MPC) decided to leave the benchmark interest rate unchanged at 0.10% at its policy meeting while maintaining  the Asset Purchase Facility steady at GBP895 billion.

In his previous appearance on February 26, Governor Bailey said, ‘we do expect a negative quarter in the first quarter of 2021,”in his  interview with Daily Echo.            

How will it impact GBP/USD?

The comments from Bailey are likely to rock the pound, especially with the experts warning that the UK is not out of the woods yet, as the Kingdom begins a gradual exit from the lockdown on Monday. Schools in England are scheduled to reopen from today as the first part of the four-step plan.

“GBPUSD holding below 1.3820 today is a medium-term sell signal targeting1.3780/70 then 1.3715/05. Gains are likely to be limited in what could be a developing bear trend. Minor resistance at 1.3890/1.3900. Unlikely but a break higher meets strong resistance at1.3950/60.

About BOE Governor Bailey

Andrew Bailey  is the  Bank of England‘s Governor. He took office on March 16th, 2020, at the end of Mark Carney’s term. Bailey was serving as the Chief Executive of the Financial Conduct Authority before being designated. This British central banker was also the Deputy Governor of the Bank of England from April 2013 to July 2016 and the Chief Cashier of the Bank of England from January 2004 until April 2011.

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