Bank of England paves way for rate cuts to begin next month

Governor Andrew Bailey ‘optimistic things are moving in right direction’

Andrew Bailey, governor of the Bank of England, did not rule out a rate cut in June. Photo: PA

William Schomberg and David Milliken

The Bank of England (BoE) has paved the way for the start of interest-rate cuts as soon as next month, and governor Andrew Bailey said there could be more reductions than investors expect.

The BoE’s monetary policy committee (MPC) kept rates at a 16-year high of 5.25pc yesterday but deputy governor Dave Ramsden joined external MPC member Swati Dhingra in backing a cut to 5pc, the central bank said.