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Bank of England Prepared to Cut Rates if Job Market Slows, Says Governor
UNITED KINGDOM, JUL 13 – Governor Andrew Bailey linked possible rate cuts to businesses slowing hiring and smaller pay rises after a 1.2% national insurance hike projected to raise £25 billion annually.
- Bank of England Governor Andrew Bailey said on July 15 that interest rates are likely to be lowered in the future if the job market slows down.
- This outlook follows the June decision to hold the base rate at 4.25% amid economic data showing the UK economy growing behind its potential and weak retail sales.
- Bailey explained that businesses are adjusting employment and pay rises partly due to Chancellor Rachel Reeves' April increase of employer national insurance contributions from 13.8% to 15%.
- He expressed confidence that interest rates will likely decline over time and emphasized that any adjustments will be made gradually and cautiously, despite some concerns about cutting rates while inflation remains above target.
- The Bank's Monetary Policy Committee will review rates again on August 7 as the economy shows slack that could help reduce inflation and the government faces pressure regarding economic growth and tax policy fairness.
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Bank of England ready to make larger interest rate cuts if UK economy shows signs of slowing down
The Bank of England is prepared to make larger interest rate cuts if the job market shows signs of slowing down, Governor Andrew Bailey told The Times in an interview. “I really do believe the path is downward” on interest rates, Mr Bailey was quoted..
·Caracas, Venezuela, Bolivarian Republic of
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The Governor of the Bank of England admitted that there are signs that companies are "intentioning employment", after the Government has increased employers' contributions to social security.
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Bank of England could cut base rate if jobs market continues to slow
The Bank of England could make cuts to interest rates if the jobs market slows down, Governor Andrew Bailey has said. Businesses are adjusting employment as a result of Chancellor Rachel Reeves'... -July 13, 2025 at 06:54 pm EDT MarketScreener
Coverage Details
Total News Sources27
Leaning Left5Leaning Right2Center6Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 38%
C 46%
15%
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