Bank of England's Andrew Bailey: 'It is far too early to be thinking about rate cuts'

Hiking cycle not necessarily over

James Baxter-Derrington
clock • 1 min read

Governor of the Bank of the England Andrew Bailey has warned that any cuts to interest rates remain a long way off, and rises could yet be seen, despite the hefty fall in inflation last month.

Speaking at the Henry Plumb Memorial Lecture, Bailey was unequivocal: "Let me be very clear: it is far too early to be thinking about rate cuts." Food price inflation drops to 15 month low Highlighting the 2.1 percentage point drop seen in UK CPI over October, Bailey said while this was "welcome news, it is much too early to declare victory". "Inflation remains too high, and we need to make sure we get it all the way down to the 2% target," he added. "Monetary policy is currently restrictive in the sense that, if we maintain this stance for long enough, we will squeeze inflation ou...

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


More on UK

The Bank of England's Jonathan Haskel (pictured). Credit: World Economic Forum/Jakob Polacsek

BoE's Haskel: Rate cuts will not happen 'anytime soon'

Productivity ‘in the doldrums’

Elliot Gulliver-Needham
clock 29 November 2023 • 2 min read
A panel of independent economists were quizzed by TSC chair Harriett Baldwin on their views regrading Hunt's latest Autumn Statement: Credit: HM Treasury

Government debt reduction forecasts include inflation-linked fuel duty rises despite 13-year freeze

TSC questions independent economists

Eve Maddock-Jones
clock 29 November 2023 • 4 min read
Debt would have been £85bn in five years’ time if the chancellor had not taken any action at the Autumn Statement,  OBR chair Richard Hughes said.

OBR warns fiscal rules 'never require the chancellor to get debt falling'

Speaking to Treasury Select Committee

Elliot Gulliver-Needham
clock 28 November 2023 • 2 min read