Central Banks
Bailey Hints BOE May Be Able to Cut Rates Before Fed
- Governor says European and US economies are diverging
- ‘Encouraging’ signs for world economy and inflation fight
Andrew Bailey
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Bank of England Governor Andrew Bailey hinted that the UK might be able to lower interest rates before the US, saying inflation dynamics in the two economies are diverging.
Bailey said on Tuesday that there is more “demand-led inflation pressure” in the US than seen in the UK after markets were spooked by surprisingly strong price data in America last week. He said there is “strong evidence” of UK price pressures retreating.