, Columnist
Bank of England Drinks the Rate-Cut Kool-Aid
What’s the sudden rush to lower interest rates? It would be far better to let the Johnson government bed down and wait a while on Brexit.
Man in a hurry.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The Bank of England’s language has shifted markedly this past week to signalling the next move in interest rates will be lower, and might happen as soon as Jan 30.
Two members of its nine-person Monetary Policy Committee voted for a cut at the last meeting and now Governor Mark Carney has sent a clear dovish signal, along with MPC members Silvana Tenreyro and Gertjan Vlieghe. If these three joined the easing camp, that would be enough to tip the next vote. The key to a rate cut hinges on data from a crucial purchasing managers survey on Jan 24.