The governor of the Bank of England has insisted “it is far too early to be thinking about rate cuts”.
In a speech at an event hosted by the National Farmers Union, Andrew Bailey said “it is too soon to declare victory” in the cost of living crisis, adding that the bank still had “a long way to go” to get inflation back to the 2% target.
Markets have bet on the bank launching its first rate reduction by the middle of next year, with two further cuts by November 2024 also priced in.
Members of the bank’s rate-setting committee have consistently said that borrowing costs must stay higher for longer.
