The Bank of England boss has said it needs to “see more evidence” that price rises have slowed further before cutting interest rates.
Andrew Bailey said he was “optimistic that things are moving in the right direction” as rates were held at 5.25%.
He said the Bank expected inflation, which measures the rate prices rise at, would fall “close” to its target level in the next couple of months.
He said the Bank expected inflation, which measures the rate prices rise at, would fall “close” to its target level in the next couple of months.
However, August or September seem to be the most likely timing.
The interest rate set by the Bank dictates the rates set by High Street banks and money lenders. Rates are currently at their highest level for 16 years which has meant people are paying more to borrow money for things such as mortgages and loans, but savers have also received better returns.
Mr Bailey said there had been “encouraging news” on inflation, currently at 3.2%, but said the Bank needed “more evidence” it would stay low before cutting rates.
However, at the news conference following the Bank’s decision, Mr Bailey said it was “likely that we will need to cut bank rates over the coming quarters” and by more than financial markets are currently predicting.
When asked whether the Bank would cut rates in June, he said: “June is not a fait accompli but each meeting is a new decision.”
The Bank of England boss has said it needs to “see more evidence” that price rises have slowed further before cutting interest rates.
He said the Bank expected inflation, which measures the rate prices rise at, would fall “close” to its target level in the next couple of months.
Andrew Bailey said he was “optimistic that things are moving in the right direction” as rates were held at 5.25%.
However, August or September seem to be the most likely timing.
He said the Bank expected inflation, which measures the rate prices rise at, would fall “close” to its target level in the next couple of months.
He said the Bank expected inflation, which measures the rate prices rise at, would fall “close” to its target level in the next couple of months.
However, August or September seem to be the most likely timing.
The interest rate set by the Bank dictates the rates set by High Street banks and money lenders. Rates are currently at their highest level for 16 years which has meant people are paying more to borrow money for things such as mortgages and loans, but savers have also received better returns.
Mr Bailey said there had been “encouraging news” on inflation, currently at 3.2%, but said the Bank needed “more evidence” it would stay low before cutting rates.
However, at the news conference following the Bank’s decision, Mr Bailey said it was “likely that we will need to cut bank rates over the coming quarters” and by more than financial markets are currently predicting.
When asked whether the Bank would cut rates in June, he said: “June is not a fait accompli but each meeting is a new decision.”
#Bank #039optimistic039 #edges #closer #summer #cut
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
