Central Banks
BOE’s Broadbent Says UK Interest Rates May Drop This Summer
- Deputy governor says cut depends on data evolving as expected
- Speech is Broadbent’s last after 13-year career at the BOE
This article is for subscribers only.
The Bank of England will be able to cut interest rates “some time over the summer” if second round inflation pressures drop away as expected, Deputy Governor Ben Broadbent said.
In his last speech after 13 years at the UK central bank, Broadbent signaled that the decision to cut rates from the current 16-year high of 5.25% would hinge on the stickiness of wage growth and whether businesses pass higher payroll costs through to prices.