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BoE's Bailey says the line between commentary and guidance is murky

© Reuters. FILE PHOTO: Bank of England Governor Andrew Bailey in London, Britain February 25, 2019. Kirsty O’Connor/Pool via REUTERS/File Photo

LONDON (Reuters) – Bank of England Governor Andrew Bailey said on Thursday that the difference between providing commentary on the state of the economy and what the central bank is likely to do with interest rates is hard to define.

“The boundary between a commentary and guidance is quite murky, actually, when you think about the words we use,” Bailey told a discussion organised by the Cambridge Union.

The BoE shocked financial markets earlier this month when it kept interest rates on hold at their coronavirus pandemic lows. Investors had read remarks made by Bailey in October as a signal that rates would rise at the BoE’s November meeting.

The BoE’s December monetary policy decision is due to be announced on Dec. 16.

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