Bank of England policymakers at odds over pace of interest rate cuts

Published 24/02/2025, 19:44
© Reuters.

Investing.com -- The speed of interest rate cuts by the Bank of England (BoE) has become a point of contention among its policymakers, according to Monetary Policy Committee member Swati Dhingra. Although all members agreed to describe the process as "gradual", their interpretations of what this term means in practice vary.

Dhingra clarified in a speech at Birkbeck, a part of the University of London, that the media’s interpretation of ’gradual’ as a 25 basis point cut per quarter was not in line with the committee’s official statement. "I know ’gradual’ has been interpreted in the media as 25 basis points per quarter. That’s not actually what the committee has said," she stated.

Furthermore, Dhingra expressed that her personal interpretation of ’gradual’ did not align with this media narrative. "I think everybody has a different definition. That’s not my definition, clearly," she added. The divergent views within the BoE’s Monetary Policy Committee suggest a lack of consensus on the pace of future interest rate reductions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.