The Bank of England could cut interest rates this summer if the inflation rate moves in line with its expectations, a deputy governor at the central bank said on Monday.
Ben Broadbent told The Times that if inflation continued to ease in the coming months, then “it’s possible the Bank rate could be cut some time over the summer”.
The comments are the latest indication that members of the Bank’s rate-setting monetary policy committee (MPC) are edging closer to voting for a loosening of policy for the first time since March 2020, possibly as soon as its next meeting on June 20.
The MPC voted 7-2 in favour of holding borrowing costs at 5.25% at its last gathering this month, although one member, Sir Dave Ramsden, joined Swati Dhingra in voting for a 0.25% cut.
Figures released by the Office for National Statistics on Wednesday are expected to show that inflation slid to 2.1% in April from 3.2 per cent in the previous month%, thanks to a sharp fall in energy prices.
City analysts believe there is a chance that the rate dropped to the Bank’s 2% or the first time since July 2021.
FTSE 100
The UK's flagship share index, the FTSE 100, was down 31-points at 8,392 shortly after opening this morning.
Brent crude oil futures were down 0.75%, trading at $83.08 a barrel.
Companies reporting today
Assura | Full Year Results |
Caledonia Investments | Full Year Results |
Cranswick | Full Year Results |
Dowlais | Trading Statement |
Kingfisher | Q1 Trading Statement |
Pennon Group | Full Year Results |
Smiths Group | Q3 Trading Statement |
SSP Group | Half Year Results |