Analysis: Less said the better? Bank of England considers communication reset

 Analysis: Less said the better? Bank of England considers communication reset
  • Markets confused by BoE signals before Nov meeting
  • Sterling and gilt yields tumbled after unchanged Bank Rate
  • BoE’s Pill says he wants to ‘train’ markets to understand better
  • Governor Bailey sees case for less guidance
  • Investors still expect BoE to raise rates in December

LONDON, Nov 26 (Reuters) – The Bank of England is rethinking how it signals what its next monetary policy steps are likely to be, after a bruising misunderstanding this month when it dashed market expectations of an interest rate rise.

New chief economist Huw Pill has said he intends to ‘train’ central bank watchers to improve understanding of the BoE, while Governor Andrew Bailey suggested saying less may be the answer.

Economists say they don’t want to be spoon-fed signals about when the BoE will raise rates – but they do need a clear sense of the relative importance it places on different data, especially with inflation recently hitting a 10-year high.

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