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BoE's Bailey says important not to cut rates 'too quickly or by too much'
Published by Global Banking & Finance Review®
Posted on August 7, 2025
1 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 7, 2025
1 min readLast updated: January 22, 2026
BoE Governor Bailey stresses the importance of not reducing interest rates too quickly or by too much, despite a recent cut to 4%.
LONDON (Reuters) -Bank of England Governor Andrew Bailey said it was important that interest rates were not lowered "too quickly or by too much" after the bank cut rates to 4% from 4.25% on Thursday following a narrow vote.
"It remains important that we do not cut bank rate too quickly or by too much," Bailey said at a press conference, adding that he expected higher inflation in recent months to be short-lived.
"There are good reasons to think that this rise in headline inflation will not persist."
(Reporting by William Schomberg, David Milliken and Suban Abdulla, writing by Sarah Young; editing by William James)
Andrew Bailey emphasized that it is important not to cut the bank rate too quickly or by too much.
The Bank of England recently cut the interest rate to 4% from 4.25%.
Bailey expects that the higher inflation seen in recent months will be short-lived and will not persist.
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