BOE Rate Decision Preview: Looking for Rate Cut Clues
The Bank of England may offer a clearer signal in the coming week on whether it plans to cut interest rates this summer. Let’s bring in Ven Ram from Bloomberg and live Team van It’s exciting. It’s BOE, of course, decision on Thursday. And we also have a press conference. What will the governor try to navigate? Well, morning Francine. I’m Andrew Bailey. Has got a lot to get through this week because you know, on the one hand, the Bank of England wants to cut rates. It is keen to bring down what it sees as a pretty restrictive rate policy rate, particularly when you consider what the ECB is likely to do. The ECB more or less seem certain to affect the first rate cut in June. So the Bank of England very much wants to cut rates. At least Governor Andrew Bailey’s in that camp seems to be in that camp. But the question is, well whether inflation will give them the headroom to do so. Core inflation is running north of 4%, services inflation is around 6% and your policy rate is at 525 S What kind of a wiggle room the Bank of England has got will emerge later this month when we get the inflation numbers for April, which Mr. Bailey is point pointed out will be the key to the evolution of inflation and the Boes outlook.