US EditionTwo Bank of England rate-setters urge caution on inflation outlook
- Last week, the Bank of England cut interest rates by 25 basis points to 4.25%, with a split vote among its Monetary Policy Committee members.
- The decision followed mixed economic signals and inflation concerns, with two MPC members favoring a larger cut and two members preferring to hold rates steady.
- Deputy Governor Clare Lombardelli and external member Megan Greene cautioned against further cuts until inflationary pressures show clear signs of easing.
- Wage growth remains elevated at nearly 6% year-on-year, core inflation stands at 3.4%, and inflation in services is about 4.7%, all above the 2% target.
- This cautious stance suggests the Bank will weigh risks carefully, and market expectations indicate possible further rate cuts later this year if inflation recedes.
11 Articles
11 Articles
BOE’s Lombardelli Voted to Cut Rates as ‘Insurance’ Against Trade Wars
Bank of England Deputy Governor Clare Lombardelli said growth in UK wages and services prices is still too high to be consistent with bringing inflation back to the 2% target but she voted to cut interest rates last week to provide “insurance” against the risk of an economic slowdown caused by global trade wars.
The return of inflation to the two percent target level may not be quick
Interest rate cut – What does it mean for your business?
The Bank of England has dropped its base rate again, now sitting at 4.25 per cent. That is four cuts in a year, and there may be more on the way. However, do not assume this automatically means good news for your business. Yes, borrowing is cheaper, but that is not the whole story If you have got loans linked to the base rate or are thinking about new finance, this change could reduce your repayments. That might sound like a cue to invest in new…
Interest rate cuts could be paused due to ‘caution’
Several members on the Bank of England’s Monetary Policy Committee have warned that sticky inflation could stall further interest rate cuts this year in marked contrast to current analyst expectations. Bank policymakers voted to lower interest rates to 4.25 per cent last week. Two MPC members voted for a 50 basis point cut, and another couple voted for rates to be held. In further signs that the Bank is taking a hawkish view on interest rate c…
Two Bank of England rate-setters urge caution on inflation outlook
Stay informed with free updates Simply sign up to the Two Bank of England policymakers have warned against rushing to reduce interest rates again in the wake of last week’s quarter-point cut, as they stressed the need to see more evidence that inflationary risks are receding. Clare Lombardelli, a BoE deputy governor, and external Monetary Policy Committee member Megan Greene on Monday suggested their votes to cut rates to 4.25 per cent had been…
Coverage Details
Bias Distribution
- 100% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
