Published by Global Banking & Finance Review®
Posted on March 20, 2025
1 min readLast updated: January 24, 2026
Bank of England's Andrew Bailey stresses caution in cutting interest rates due to slow inflation decline. The BoE maintains a 4.5% key rate amid economic uncertainties.
LONDON (Reuters) - Bank of England Governor Andrew Bailey said on Thursday that the central bank would have be careful about cutting interest rates because the fall in inflation pressures has been very gradual.
"We have to be quite careful at this point in how we calibrate our response because we're still seeing a very gradual fall in inflation. We need to accumulate the evidence," Bailey told broadcasters.
"We really do to have wait to see that evidence unfold."
Earlier on Thursday, the BoE held its key rate at 4.5% and warned against assumptions that borrowing costs would be cut over its next few meetings as it grappled with uncertainty overhanging the British and world economies.
(Writing by William Schomberg; editing by Suban Abdulla)
The article discusses the Bank of England's cautious approach to cutting interest rates due to the slow decline in inflation pressures.
Andrew Bailey highlights the need to accumulate evidence as inflation pressures are falling gradually, necessitating a careful approach.
The Bank of England has held its key rate at 4.5% amid ongoing economic uncertainties.
Explore more articles in the Headlines category
