[BoE Governor Bailey downplays the second round of inflationary effects and agrees with Warsh’s view on forward guidance] August 29th, as the Bank of England is about to make its next interest rate decision on September 17, Governor Andrew Bailey still insisted on his view in an interview that the UK has not yet seen a significant second round of inflationary effects. "We're seeing pretty mild second-round effects, and I think we've seen the labor market weaken for a while," Bailey said at the Fed's Jackson Hole economic conference. "My view is that at this point we can continue to watch the situation." This is Bailey's first opinion on monetary policy since July 30. At that time, the Bank of England voted 6 to 3 to keep interest rates unchanged, and Bailey was one of the members who voted in favor. At a press conference after the meeting, Bailey said: "Please do not leave this room thinking that the Bank of England is gradually moving towards a rate hike." However, traders have since increased their bets on a rate hike. The market is now fully priced in a 25 basis point interest rate hike this year and another 25 basis point increase by next spring, and short-term British government bonds have also underperformed their U.S. counterparts.