BoE's Bailey hints at rate cuts with March meeting a 'genuinely open question'

Rates at 3.75%

Linus Uhlig
clock • 2 min read

The Bank of England will likely make interest rate cuts this year, with the first reduction in rates potentially as soon as March, according to its governor, Andrew Bailey.

Speaking at a Treasury Committee hearing on Tuesday (24 February), Bailey told MPs that there is "scope for some form of further easing during most probably this year".  Bailey has been a swing voter during recent Monetary Policy Committee (MPC) meetings, often casting the decisive vote in a heavily split committee.  In December 2025, he opted for a cut which saw the Bank rate reduced from 4% to 3.75% but switched to a hold at the BoE's most recent meeting in February.  He cautioned that a fall in headline inflation translating through into inflation expectations remained "still a ...

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