BoE ‘optimistic’ about cuts despite unchanged interest rates
Bank of England Governor Andrew Bailey has said he is 'encouraged' by the direction of inflation, hinting borrowing costs could soon be cut if inflation is reined in. Report by Alibhaiz. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00We've been through very, very difficult times in terms of inflation, big increases in inflation.
00:05The question for us is, what's the sort of the hangover from that? How persistent is that going
00:09to be? Now, the judgment we've made this time is we think it's going to be less than we thought
00:14it was, and that's good. Now, we do need to see some evidence to back that up. Different members
00:20of committee have different views on how much evidence, what sort of evidence, but I'm encouraged
00:24because I hope that evidence will come to pass. I expect it will. That will take us to a cut.
00:31I think we've seen the end of the technical recession we had last year. So, we're seeing
00:35an economy that's starting to grow. It's got a long way to go, but it's starting to grow.
00:42We've got unemployment that seems to have stayed low. That's very good.
00:46We're seeing some increase in household real incomes. Very good. My guidance is,
00:52I'm optimistic now. I'm more optimistic now, and I'm encouraged by what I'm seeing,
00:56about a number of things. One is that I think the path of inflation is downwards.
01:00I think that will lead to cuts in interest rates.