The markets have put the Truss mini-Budget behind them

What is the lasting impact of Liz Truss and Kwasi Kwarteng’s mini-Budget? According to Andrew Bailey, the governor of the Bank of England, the big implications for monetary policy have come and gone. Speaking to the Treasury Select Committee this afternoon about the UK’s financial security, Bailey noted that the spike in both gilt yields and interest rate expectations last autumn have since fallen, with the former back to a ‘normal area of distribution’ and the latter having ‘seen correction’ as ‘new fixed mortgage rates’ have ‘come down.’

External member of the financial policy committee Jonathan Hall chimed in too, insisting that it ‘doesn’t look as though there was any sort of permanent damage done at the end of last year.’ This echoed the governor’s assessment that ‘we’re back to where we were…things restored to normal.’

Bailey and Hall’s comments reflect what The Spectator’s data hub has been tracking for months: market expectation for where interest rates will peak.