Bank of England Prepared to Make Larger Interest Rates Cuts

The Bank of England is prepared to make larger interest rate cuts if the job market shows signs of slowing down. That’s according to the bank’s governor, Andrew Bailey.

Bailey says he really doesn’t believe the path is downward on interest rates.

Interest rates currently stand at 4.25 per cent and will be reviewed at the Bank’s next meeting on August 7, when many economists expect the rate will be cut.

They affect mortgage, credit card and savings rates for millions of people.

Bailey says the UK’s economy was growing behind its potential, opening up slack that would help to bring down inflation.

Slack refers to the amount of unused resources in an economy, such as working factories that are not producing anything or people who cannot find a job.