Bank of England governor Andrew Bailey told the UK lawmakers on Tuesday that he cannot say when or how much the interest rates will be cut. However, the official noted that the market expectations that the BoE will reduce interest rates during this year are not unreasonable, adding that he is comfortable with a profile that has rate cuts in it.
In addition, the BoE's chief reiterated his view that the BoE's policymakers don’t need obviously inflation to come back to the 2% target before they cut interest rates. “I must be very clear on that, that’s not necessary,” he stressed.
Bailey also admitted that he sees encouraging signs that price pressures in Britain are easing and suggested that the technical recession the country's economy entered last year is likely to be very small.