Why Did Bank of England NOT Raise Interest Rates?

Yesterday the Bank of England monetary policy announced they would be holding rates for now and the market believes Andrew Bailey, governor of the Bank of England did them dirty. After all, it seemed a rate rise was on the cards after Bailey said that they will have to act last month.

Why Did the Bank of England Choose to Not Raise Rates?

Larry Elliott from the Guardian questioned Andrew Bailey on his decision. He said “The markets were clearly expecting you to raise rates at this meeting, and you didn’t. Is it a failure of communication on your part, and is there a risk that you become Unreliable Boyfriend Number 2?”

Bailey said that he’s not an Unreliable Boyfriend and that the decision was a ‘close call’ which they spent many more hours on this time than usual. If he didn’t like the Unreliable Boyfriend tag, I’d suggest he steers well clear of Twitter. This one from Richard Murphy is on the polite side compared to others. He says if only Bailey knew it’s better to keep silent and have everyone think you’re a fool than to speak and have everyone know you’re one.