Bank of England cuts interest rate to 4%

ODN

Bank of England governor Andrew Bailey announces an interest rate cut from 4.25% to 4%, adding that inflation is expected to hit 4% in September. Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

Transcript

00:00Today we've cut bank rates by 0.25 percentage points to 4%.

00:05There's been substantial disinflation over the past two and a half years,

00:10supported by the restrictive stance of monetary policy.

00:15Domestic price and wage pressures have generally continued to abate in recent months,

00:19and that's allowed us to take another step today in reducing bank rates.

00:25But the picture is more complex than that.

00:27Headline inflation rose to 3.6% on the latest data for June,

00:34owing to increases in energy, food and administered prices.

00:38Now, we have been expecting this move up.

00:40Indeed, I referred to it at the last press conference we had in May.

00:44We think that inflation will increase to around 4% in September.

00:49Our job is to ensure that inflation falls back to the 2% target

00:53once these temporary factors pass, as we expect to see.

00:56So it remains important that we do not cut bank rate too quickly or buy too much.

01:00All right.

01:01And let's get started today.

01:02Alright.

01:02Let's get started.

Category

Transcript

Recommended