Bank of England Governor Andrew Bailey yesterday gave his strongest hint yet that Britain could start cutting interest rates before the US. Bailey said that progress in the battle against inflation may mean it needs to cut rates by more than markets currently expect. The Bank of England yesterday left interest rates on hold at 5.25 per cent but hinted at a cut this summer – possibly next month – amid signs that inflation is close to hitting its 2 per cent target. ING Bank economist James Smith said: ‘The Bank of England is getting very close to its first rate cut. What isn’t in doubt, is that the Bank is comfortable with moving ahead of the Fed.’The Bank of England’s nine-member monetary policy committee (MPC) voted 7-2 to leave interest rates on hold yesterday.

Source: Daily Mail May 10, 2024 00:50 UTC