He Deputy Governor of the Bank of England (BoE), Ben Broadbentsaid on Monday that BoE likely to cut policy rate this summeraccording to Reuters.
“If things continue to evolve with their forecasts – forecasts that suggest policy will have to become less restrictive at some point – then it is possible that the bank rate will be cut at some point in the summer,” Broadbent said.
Key statements
“We are not on a knife edge where any rate cut would produce above trend growth, policy would remain restrictive.”
“The experience of the last 2-3 years has made members of the Monetary Policy Committee cautious about cutting rates.”
“Signs of easing inflationary pressures are reassuring.”
“It is a matter of individual opinion at the MPC how much evidence is needed for a rate cut.”
Market reaction
GBP/USD showed no immediate reaction to these comments and is moving sideways around 1.2700.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
