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Bank of England: Possible bank rate cut could happen this summer – Ben Broadbent

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

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