The Bank of England is not considering cutting interest rates, according to Governor Andrew Bailey. Despite oil prices falling back near pre-Iran war levels, Bailey stated that rate cuts are off the table for now.
Interest Rate Outlook
Most economists expect the Bank of England to leave rates unchanged this year, while financial markets see a roughly 75% chance of a single quarter-point rate hike. Bailey emphasized that the Bank of England does not need to rush into making policy decisions and can wait to see how the jump in oil prices affects Britain’s economy.
Adding to the difficulty is getting a clear sense of how energy prices will develop, as futures prices for oil and gas have failed to provide a reliable guide. Bailey noted that oil and gas futures prices are terrible indicators and that the Bank of England is wrestling with this data point.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
