Lates News

The Bank of England reiterated its guidance to "take a gradual and cautious approach" in further reducing borrowing costs, but added a new clue in its outlook information suggesting that its rate-cutting action may soon come to an end. The Bank of England stated that "as the constraints on monetary policy from cutting rates have somewhat diminished" it no longer directly stated that policy remains restrictive. The Bank of England reiterated that there is no predetermined path for interest rates. Stopping the rate-cutting process would be a blow to Chancellor Rishi Sunak and Prime Minister Boris Johnson, who have been striving to fulfill their promises to voters to accelerate the UK's sluggish economic growth. Bailey stated that the decision to cut rates for the fifth time since August was "very balanced," even though he believed that rates are still on a downward path.