BoE signals rate cuts over summer


Bank of England governor Mark Carney has warned monetary policy easing will be needed over the summer in a speech today aimed at reassuring markets.

Speaking in the Bank’s court room, Carney said a first assessment around easing would take place on 14 July with a full forecast outlined in the August inflation report.

Carney adds that if interest rates are too low the hit to bank profitability could reduce credit availability or increase its overall price.

He says: “I can assure you that in the coming months the Bank can be expected to take whatever action is needed to support growth subject to inflation being projected to return to the target over an appropriate horizon, and inflation expectations remaining well anchored.”

More to follow…