Bank of England governor hints at imminent interest rate cuts

The Bank of England governor talked up hopes of imminent interest rates cuts today after borrowing costs were kept on hold. Andrew Bailey said reductions in borrowing costs 'are on the way' as he hailed 'good news' on inflation. Despite policymakers deciding on another pause at 5.25 per cent this month, he did not rule out starting the downward shift in May - earlier than markets had estimated. And he suggested it is 'reasonable' to price in two or three cuts by the end of the year.

The upbeat comments will fuel mounting hopes that relief is coming for struggling mortgage-payers. The Bank's Monetary Policy Committee voted by a 8-1 majority to hold rates steady at their 16-year high today, with one member preferring a 0.25 point cut. Notably there was no support for more rises, compared to two economists who supported further hikes last month. Chancellor Jeremy Hunt hailed a sharper-than-anticipated drop in the headline CPI yesterday, saying it 'opened the door' for Threadneedle Street to act soon. The Pound dipped on the announcement, as traders hardened their bets on interest rates going down before too lon

Bank Of England Governor Interest Rate Cuts Borrowing Costs Inflation Mortgage-Payers Monetary Policy Committee Jeremy Hunt CPI Threadneedle Street Pound

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