US EditionBank of England Prepared to Cut Rates if Job Market Slows, Says Governor
UNITED KINGDOM, JUL 13 – Governor Andrew Bailey linked possible rate cuts to businesses slowing hiring and smaller pay rises after a 1.2% national insurance hike projected to raise £25 billion annually.
- The Bank of England will review its 4.25% interest rate on August 7 amid concerns over the UK economy and labor market.
- This decision follows April's increase in employers' national insurance contributions from 13.8% to 15%, which has led businesses to adjust employment and pay rises.
- Governor Andrew Bailey said the UK economy is growing below potential, creating slack that could reduce inflation and allow for gradual rate cuts if job market weakens.
- Bailey expressed confidence that interest rates are likely to decrease over time, while noting that the Monetary Policy Committee continues to emphasize a measured and cautious approach when adjusting rates despite inflation remaining above target.
- The review and possible future rate cuts suggest the Bank aims to balance economic growth against inflation while monitoring labor market signals amid government fiscal pressures.
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The Governor of the Bank of England admitted that there are signs that companies are "intentioning employment", after the Government has increased employers' contributions to social security.
·Portugal
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Bank of England could cut base rate if jobs market continues to slow
The Bank of England could make cuts to interest rates if the jobs market slows down, Governor Andrew Bailey has said. Businesses are adjusting employment as a result of Chancellor Rachel Reeves'... -July 13, 2025 at 06:54 pm EDT MarketScreener
Evening Standard+3 Reposted by 3 other sources
Bank of England could cut base rate if jobs market continues to slow – Bailey
Businesses are ‘adjusting employment’ as a result of Rachel Reeves’ decision to raise national insurance contributions for firms, the governor said.
·London, United Kingdom
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Total News Sources23
Leaning Left4Leaning Right2Center6Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
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