UK interest rates could be cut by the Bank of England as soon as this summer, according to its deputy governor.
The UK interest rate currently sits at a 16-year-high of 5.25% after it had been increased by the Bank of England’s Monetary Policy Committee over the past two years in a bid to tackle inflation.CPI inflation has since dropped to 3.2% for March, compared with the previous year, and is predicted to drop towards the 2% target rate in the coming months.
He added: “Whatever the priors of its individual members the MPC will continue to learn from the incoming data and, if things continue to evolve with its forecasts – forecasts that suggest policy will have to become less restrictive at some point – then it’s possible the bank rate could be cut some time over the summer.”