BOE Delivers Rate Cut With Warning on Budget’s Inflation Hit
- Spending plan could add as much as half a percent to CPI
- Governor Andrew Bailey reaffirms gradual approach to easing
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The Bank of England cut borrowing costs for the second time this year, but stopped short of signaling faster easing, warning that last week’s budget could drive up inflation by as much as half a percentage point.
The Monetary Policy Committee led by Governor Andrew Bailey voted 8-1 to lower the benchmark interest rate by a quarter point to 4.75%, with Catherine Mann, an external official, the sole dissenter. The outcome was widely anticipated by economists.