Impending rate cuts leave Bailey with little 'ammunition' to fight sluggish UK growth

Bond markets price in prospect of a 25bps rate cut

Investment Week
clock • 4 min read

Incoming Governor of the Bank of England (BoE) Andrew Bailey will have little capacity to combat sluggish growth when he takes over in March, with the anticipated interest rate cut at the end of January unlikely to kick start the UK economy, experts have warned.

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

UK government borrowing rises to nearly a third above OBR forecast
UK

UK government borrowing rises to nearly a third above OBR forecast

ONS data

clock 19 June 2026 • 3 min read
Bank of England holds rates at 3.75% for fourth consecutive time
UK

Bank of England holds rates at 3.75% for fourth consecutive time

Energy shock impact still unclear

Michael Nelson
clock 18 June 2026 • 2 min read
Chances of interest rate hike 'diminished' as UK inflation steady at 2.8%
UK

Chances of interest rate hike 'diminished' as UK inflation steady at 2.8%

BoE meeting on Thursday (18 June)

Michael Nelson
clock 17 June 2026 • 2 min read
Trustpilot