Finance
BoE's Lombardelli favours slower rate cuts
Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
BoE's Clare Lombardelli advises a slower pace for rate cuts due to inflation concerns, highlighting pressures in the UK economy and labor market.
LONDON, Dec 9 (Reuters) - Bank of England Deputy Governor Clare Lombardelli said she was worried about upside risks for British inflation and the central bank should move more slowly to lower borrowing costs as it approaches the end of its interest rate-cutting cycle.
"I am very worried that we are seeing more pressure on resources in the economy, and that obviously leads to price rises. I think you can see it in the labour market," she told lawmakers on the Treasury Select Committee on Tuesday.
"I am also perhaps less convinced than others (on the Monetary Policy Committee) about how restrictive monetary policy is at the moment, as in how far we are from reaching the end of the cutting cycle."
Lombardelli said that as the BoE approaches the end of its run of rate cuts "and you don't know where it is, you might slow down a bit to try and anticipate and find your way a bit more."
The BoE held its benchmark Bank Rate at 4% in November, a tight decision backed by five of the MPC's nine members.
(Reporting by David MillikenWriting by Suban AbdullaEditing by William Schomberg)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount. They are influenced by central bank policies and economic conditions.
The UK economy refers to the economic system of the United Kingdom, characterized by a mixed economy that includes various sectors such as services, manufacturing, and agriculture.
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