TechFlow news, on December 4, according to Jinshi News, Bank of England Governor Bailey said on Wednesday that if the UK economic outlook is confirmed, the Bank expects to cut interest rates four times next year. He welcomed the recent decline in inflation, stating that inflation has fallen faster than policymakers expected a year ago.
Bailey said: "We always release data based on market interest rate forecasts, so as you said, this actually reflects the market's view." He added: "We have been examining some potential future pathways, some of which are better than others."
UK inflation has fallen significantly from its peak of 11.1% at the end of 2022, with prices rising by 2.3% in October, slightly above the official 2% target. Bailey noted that although various inflation scenarios remain possible, the central projection in the latest Monetary Policy Report implies a gradual approach to rate cuts.
The Bank of England governor made these remarks as the OECD predicted that due to Britain's growth and inflation outlook, the BoE would not be able to cut rates as aggressively as the Federal Reserve and the European Central Bank.
