Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Bank of England rate cut 'possible' in summer, says deputy governor Broadbent

Published 20/05/2024, 13:27
© Reuters Bank of England rate cut 'possible' in summer, says deputy governor Broadbent
GBP/USD
-

Proactive Investors - Ben Broadbent, a member of the Bank of England's rate-setting committee, said the base rate could be cut at some point this summer.

Deputy governor Broadbent, who steps down next month after 13 years on the Monetary Policy Committee (MPC), made the comment in a speech this morning.

Following on from comments about the persistence of inflation, he said there is a "range of views" across the MPC on how persistent inflation could be.

"In view of the rarity of events like this over the past, and the associated uncertainty about the future, that’s entirely understandable.

"Whatever the priors of its individual members the MPC will continue to learn from the incoming data and, if things continue to evolve with its forecasts – forecasts that suggest policy will have to become less restrictive at some point – then it’s possible Bank Rate could be cut some time over the summer."

His comments come ahead of the Office for National Statistics publishing the latest consumer price index on Wednesday, which is expected to show a sharp drop in the level of inflation, close to the MPC's 2% target.

At the last policy meeting, two members of the committee voted for a cut, though the majority vote, including Broadbent, led to rates being kept at 5.25%.

A month ago, the ONS data showed CPI inflation was 3.2% in March, with April forecast to see a big softening to 2.1% in the annual rate, as the month-on-month figure eases to 0.2% from 0.6%.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.