Bailey Says BOE Can Cut Rates Before Inflation Hits Target
- Governor says market bets on lower rates ‘not unreasonable’
- Plays down recession last year after seeing signs of an upturn
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Bank of England Governor Andrew Bailey said inflation does not need to fall to its 2% target before policymakers back an interest-rate cut and signaled that investors are right to expect a policy pivot this year.
Bailey told UK lawmakers that market bets on rate reductions this year are “not unreasonable.” He said he was “comfortable with a profile that has cuts in it,” but added that when and by how much policy is eased depends on further progress being made on tackling sticky inflation.