It’s “too early” to be talking about rate cuts, the governor says, even as markets reach for a view on the future path of interest rates.
Bank of England governor Andrew Bailey pushed back against market bets on interest rate reductions, saying that officials need to carry on fighting inflation for now.
The governor’s messaging did little to change market expectations. Traders on Tuesday moved to price in more reductions in the BOE’s benchmark lending rate next year after Pill hinted the central bank was open to cutting rates by the middle of 2024, in line with market wagers. Traders are anticipating around 75 basis points of decreases for the first time, up from just 30 basis points last month.
NIESR said public investment needs to rise to 3 per cent of GDP per year to address an economic malaise that means that low to middle income households are undergoing seven years of falling living standards. It predicted lacklustre growth of just 0.6 per cent in 2023 and 0.5 per cent in 2024 ahead of the autumn fiscal statement from Chancellor of the Exchequer Jeremy Hunt.
In the long term, an ageing population suggested we are “going back to low rates”, he said. This conflicts with arguments from some other economists, who argue an older population will push up rates. In the short term, however, a tight labour market and a mismatch between job vacancies and the workers available for the roles pointed the opposite way, Bailey said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Brexit has hit UK’s economic openness, says Bank of England governorAndrew Bailey says free trade demands greater international cooperation on financial rule-making
Read more »
Why Bill Bailey turned his back on one of Australia’s most popular destinationsThe British comedian was determined to make a different kind of travel show, so he headed to Western Australia.
Read more »
Why Bill Bailey turned his back on one of Australia’s most popular destinationsThe British comedian was determined to make a different kind of travel show, so he headed to Western Australia.
Read more »
Why Bill Bailey turned his back on one of Australia’s most popular destinationsThe British comedian was determined to make a different kind of travel show, so he headed to Western Australia.
Read more »
‘Bring back Scott Morrison’: Andrew Bolt’s bold suggestion for Coalition cabinet reshuffleSky News Australia host Andrew Bolt has claimed the Coalition must “bring back” former Prime Minister Scott Morrison to the front bench and reshuffle the entire shadow cabinet to defeat Labor at the next federal election.
Read more »
Andrew Probyn’s lucky Melbourne Cup drawThings are looking up for Aunty’s former political editor, unceremoniously made redundant in June, after winning the ABC’s Melbourne Cup sweep.
Read more »