BOE’s Bailey: We don’t need inflation to be back at target before cutting rates

  • Looking for more sustained progress on reduction of more persistent elements of inflation
  • Seeing some signs that pay growth is adjusting down in line with lower headline inflation
  • Good news that economy is at full employment
  • Inflation forecasts do not rule out policy easing at some point this year (Broadbent)
  • That is the more likely direction in which bank rate is likely to move (Broadbent)
  • But timing of any adjustment depends on economic data (Broadbent)

The comments mostly just reaffirm their ongoing policy stance. It doesn’t take away from the likelihood of a June rate cut, in which markets are heavily leaning towards at the moment.

This article was written by Justin Low at Source