BoE’s Bailey dismisses rate cut speculations again

BoE Governor Andrew Bailey, in an interview, emphasized, “Two percent is our (inflation) target and we will do what it takes to get there.”

Bailey also addressed the speculation around interest rate cuts, categorically stating, “We are not in a place now where we can discuss cutting interest rates – that is not happening.”

He noted, “We need to see how the final part of the journey down to 2% inflation plays out; we have not seen enough of that journey yet to be confident.”

He acknowledged the ongoing economic challenges, including some weakening in economic activity. However, he described this observation as a “realist view” rather than an “ultra-pessimist” outlook, as some critics have suggested.