Bailey Signals BOE May Cut Rates More Quickly Than Expected
- Central bank votes to hold interest rates steady at 5.25%
- Markets price in 50% chance of interest rate cut next month
The Bank of England sent its clearest signal yet that it was closing in on interest rate cuts, with Governor Andrew Bailey indicating markets were underpricing the pace of easing in the months ahead.
The BOE governor made his comments after the UK central bank voted 7-2 to keep the base interest rate at 5.25%, a decision announced Thursday in London. Notably, Deputy Governor Dave Ramsden joined external member Swati Dhingra in calling for an immediate cut, pointing toward more support within the bank to move rates off a 16-year high. The other seven members of the Monetary Policy Committee preferred no change, saying they needed more evidence that inflation will be subdued.