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


Andrew Bailey, governor of the Bank of England, at the central bank’s headquarters in the City of London, U.K., on Nov. 29, 2024. 

Hollie Adams | Bloomberg | Getty Images

Bank of England Governor Andrew Bailey on Wednesday signaled that the U.K. could be on track for four interest rate cuts over the next year, if inflation continues on a downward path.

Asked during a Financial Times video interview whether the central bank would be poised to carry out four quarter-point cuts over the coming year, if its projections of “a little bit of [inflation] persistence” come to fruition, Bailey responded, “Exactly.”

Markets are currently pricing in a hold on interest rates at the Bank of England’s December meeting, according to LSEG data, followed by three 25-basis-point rate cuts.

The BoE governor added that inflation had come down faster than the central bank had anticipated.

“A year ago, we were saying that inflation today would be around 1% higher than it actually is,” he said during the interview. “And that, I think, is a good test of the [central banking] regime.”

This is a breaking news story and will be updated shortly.



Source

Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’ with China’s Xi
World

Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’ with China’s Xi

TOKYO, JAPAN – OCTOBER 27: U.S. President Donald Trump disembarks Air Force One as he arrives at Haneda Airport on October 27, 2025 in Tokyo, Japan. Takashi Aoyama | Getty Images News | Getty Images U.S. President Donald Trump said he expects to lower fentanyl-linked tariffs on China ahead of a much-anticipated meeting with Chinese […]

Read More
Australia’s inflation tops forecasts at 3.2%, highest in over a year
World

Australia’s inflation tops forecasts at 3.2%, highest in over a year

Tourists sit on a bollard at the Sydney Opera House. Afp Contributor | Afp | Getty Images Australia’s inflation accelerated in the third quarter, with consumer prices rising 3.2% from a year earlier — the fastest pace in more than a year — the Australian Bureau of Statistics said Wednesday. The increase topped the 2.1% […]

Read More
Japan stocks hit record high amid mixed trading in the region as investors look toward Fed rate decision
World

Japan stocks hit record high amid mixed trading in the region as investors look toward Fed rate decision

Mount Fuji and the Shinjuku skyline in Tokyo, Japan, on Friday, Feb. 14, 2025. Photographer: Kiyoshi Ota/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images Japan’s Nikkei 225 rose over 1% to hit a fresh record high amid mixed trading in the region on Wednesday as investors awaited the Federal Reserve’s interest rate decision, […]

Read More