Interest Rates on a Downward Trend Amid Growing Uncertainties

Bank of England Governor Andrew Bailey highlighted the increasing uncertainty surrounding the monetary policy path during his recent address. Despite the unclear neutral rate range and the unpredictable timeline to achieve it, Bailey reassured that the current policy stance remains restrictive, aiming to balance both upside and downside risks effectively.

Forecasts Remain Steady Despite Rate Cut

Bailey also noted that the BoE's activity forecasts have seen minimal changes since May. The decision to cut rates was clarified as not being driven by fears of a potential recession, underscoring the bank's strategic approach to monetary policy adjustments.