Bank of England 'optimistic' as it edges closer to summer rate cut

The Bank of England boss has said it needs to "see more evidence" that price rises have slowed further before cutting interest rates.

Andrew Bailey said he was "optimistic that things are moving in the right direction" as rates were held at 5.25%.

He said the Bank expected inflation, which measures the rate prices rise at, would fall "close" to its target level in the next couple of months.

It paves the way for an interest rate cut as early as June.

But Mr Bailey warned a cut was "not a fait accompli, it's not a done deal".

August or September appear to be the most likely timing, especially if inflation falls as expected.

Source: https://www.bbc.co.uk/news/business-68978591

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