BoE's Bailey: Gradual and careful remain my guides for rates

• Key factors for May rate decision were domestic, not tariffs.
• We have not seen particular inflation surprises.
• Labour market has loosened somewhat.
• Pay growth is above levels consistent with a 2% inflation target but lower than expected in February.
• Path of slowing pay growth is intact.
• I was undecided ahead of May policy decision.

The UK continues to have the highest core inflation rate among the major economies.

• I will not make any prediction about June rate decision.

They will hold rates steady of course and this is also what the market fully expects.

• Path for rates remains downwards.
• How far and how quickly rates will fall is shrouded in a lot more uncertainty.
• Uncertainty reflects international situation.
• Impact of fragmented global trade is negative for global growth.
• Uncertainty will delay UK businesses investment decisions.
• Impact on prices is ambiguous.
• We are not seeing the same impact on supply chains and inflation we did in 2021.