BANK OF ENGLAND’S BAILEY SIGNALS FOUR INTEREST RATE CUTS IN 2025 IF INFLATION COOLS

BANK OF ENGLAND’S BAILEY SIGNALS FOUR INTEREST RATE CUTS IN 2025 IF INFLATION COOLS
Bank of England Governor Andrew Bailey suggests the U.K. could implement four interest rate cuts in 2025 if inflation continues to decline.
In an interview with the Financial Times, Bailey mentioned the possibility of four quarter-point reductions.
Current market expectations indicate the BoE will hold rates in December, followed by three 25-basis-point cuts in 2025.
These reductions, along with two cuts earlier this year, could bring the benchmark rate to around 3.75%.
Bailey stressed a cautious approach, stating monetary policy should stay restrictive until inflation risks subside and the 2% target is sustainable.