BoE's Ben Broadbent: Summer rate cut on horizon if economic data follow forecasts

Uncertainty over second-round effects

An interest rate cut from the Bank of England could be on the cards for “some time over the summer”, said deputy governor for monetary policy Ben Broadbent.

In his final speech as deputy governor at a Bank of England event yesterday (20 May), he argued the large inflationary shocks brought by the pandemic and the war in Ukraine are now over, with economic data stabilising over the last year or so. Bank of England mirrors Federal Reserve and holds interest rates As such, he argued if data follow the current forecasts, the BoE is likely to begin cutting rates at some point over the summer. "Whatever the priors of its individual members, the MPC will continue to learn from the incoming data and, if things continue to evolve with its forec...