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>>Governor Bailey’s pivotal signal of a BoE rate cut ignites optimism for the economy.

Governor Bailey’s pivotal signal of a BoE rate cut ignites optimism for the economy.

crypthub

about 15 hours ago

Bailey Signals Possible Rate Cut

Governor Andrew Bailey said a BoE rate cut at the next MPC meeting is “a genuinely open question,” showing the committee is now considering easing. He added that any decision will be “data‑dependent.” This marks a shift from the strict inflation‑focused stance of the past two years.

Economic Indicators and Market Reaction

CPI is now 2.3% and core inflation 3.1%, while services inflation remains at 4.5% and wage growth has slowed to 5.6%. The pound slipped and gilt yields fell as markets priced a higher chance of a 25‑bp cut. Mortgage‑renewing households and businesses could feel immediate relief from lower borrowing costs.

Outlook and Data Dependence

The MPC will watch new CPI, wage, GDP and PMI data over the next six weeks. Swap markets imply about a 60% chance of a cut, but a single adverse report could reverse that view. Bailey stressed that any move depends on sustained easing of services inflation and wages.