(Image: PA)
'More aggressive' interest rate cuts could be on the way, Bank of England boss says
by Holly Williams, PA · Manchester Evening NewsBank of England Governor Andrew Bailey has said interest rate cuts could become “more aggressive”, sparking falls in the value of the pound.
He said that, if inflation remains in check, the Bank might be able to be “more activist” over reducing borrowing costs.
The pound fell by nearly 1% against the US dollar and the euro – to 1.317 US dollars and 1.193 euros respectively – after he told The Guardian newspaper that rate cuts could become “a bit more aggressive”.
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It signals a possible change in stance from Mr Bailey, who recently said the Bank would only lower rates “gradually”.
The Bank cut rates to 5% from 5.25% in August, marking the first reduction since March 2020, after inflation returned to the 2% target.
Inflation has since edged back up to 2.2% and experts have been forecasting just one more rate reduction before the year end, to 4.75%.