Interest rate cuts 'somewhat closer' than last month ahead of BoE announcement

Cuts to Britain's interest rate could be "somewhat closer" than last month, says the Bank of England's chief economist.

Huw Pill highlighted that the economic outlook has "not changed substantially" with some risks still at play if the Bank's Monetary Policy Committee reduces rates too early. Currently, interest rates are at a 15-year high of 5.25 per cent and has remained at this level for the past five MPC meetings.

With a recent drop in inflation, speculation has begun to grow around whether the central bank will begin cutting rates once again. Despite this, it appears the rate-setters are moving cautiously with cutting rates.In a recent speech in London, Mr Pill said: “The combination of little news and the passage of time have brought a bank rate cut somewhat closer.

“But the same lack of news gives me no reason to depart from the baseline that I already established.” He added that the steady drop in inflation means "the outlook for UK monetary policy in the coming quarters has not changed substantially since the beginning of March". He continued: "“After several years of above target inflation rates and given the threat of persistent inflation dynamics becoming embedded in expectations, in my view there are greater risks associated with easing too early should inflation persist rather than easing too late should inflation abate.Consumer Price Index inflation dipper to 3.2 per cent in March and is expected to move closer to the Bank's 2 per cent target rate in April, following another drop in energy prices.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of England governor talks up interest rate cut prospects as inflation eases to 3.2%While Andrew Bailey sees further progress in the battle against inflation, most financial market bets are now firmly placed on a first interest rate cut not happening until August at least.
Source: SkyNews - 🏆 35. / 67 Read more »

Bank of England urged to cut interest rates with Northern firms stuck in 'holding pattern'The Bank of England has been urged to cut interest rates to break a “holding pattern” for the economy which has contributed to falls in Northern businesses hiring new workers.
Source: The Yorkshire Post - 🏆 39. / 66 Read more »

Bank of England could wait longer to lower interest rates, experts warnThe minimum wage rise could have a wider impact on interest rates
Source: MENnewsdesk - 🏆 23. / 69 Read more »

UK inflation falls to 3.2 per cent - what it could mean for interest ratesThe latest inflation figures will directly influence the Bank's interest rate decision next month
Source: MENnewsdesk - 🏆 23. / 69 Read more »

JPMorgan warns of need for ‘reality check’ on phasing out of fossil fuelsUS bank says higher interest rates, inflation and global conflict have dented outlook for energy transition
Source: ftenergy - 🏆 47. / 63 Read more »

Newcastle reignite interest in Arsenal goalkeeper Aaron Ramsdale ahead of a possible summer moveThe top stories and transfer rumours from Tuesday's newspapers...
Source: SkySportsNews - 🏆 60. / 63 Read more »