{"id":96667,"date":"2025-05-13T00:25:14","date_gmt":"2025-05-13T00:25:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/96667\/"},"modified":"2025-05-13T00:25:14","modified_gmt":"2025-05-13T00:25:14","slug":"bank-of-england-policymakers-remain-cautious-over-the-pace-of-interest-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/96667\/","title":{"rendered":"Bank of England policymakers remain cautious over the pace of interest rate cuts"},"content":{"rendered":"

By JESSICA CLARK <\/a> <\/p>\n

Updated: 17:00 EDT, 12 May 2025 <\/p>\n

Bank of England policymakers remain cautious about the pace of interest rate cuts.<\/p>\n

Deputy governor Clare Lombardelli yesterday warned Donald Trump\u2019s trade war will hit the UK economy but said \u2018caution remains appropriate\u2019 when reducing borrowing costs.<\/p>\n

And economist Megan Greene, a member of the Bank\u2019s Monetary Policy Committee (MPC) \u2013 which sets rates \u2013 said the group\u2019s approach continues to be \u2018gradual and careful\u2019.<\/p>\n

Policymakers last week cut rates by a quarter of a percentage point to 4.25 per cent.<\/p>\n

President Trump\u2019s trade war is expected to drive down inflation<\/a> in the short-term due to \u2018trade diversion, movements in the exchange rate and the trade policy uncertainty in itself,\u2019 Lombardelli said.\u00a0<\/p>\n

But rate-setters yesterday said they were more focused on domestic issues in the UK when making their decision on how fast to cut borrowing costs.<\/p>\n

\"Rate <\/p>\n

Rate cuts: Bank of England deputy governor Clare Lombardelli (pictured) warned Donald Trump\u2019s trade war will hit the UK economy but said \u2018caution remains appropriate\u2019\u00a0<\/p>\n

Lombardelli said there was \u2018substantial progress\u2019 on wage growth falling by the end of the year but that it was \u2018still too high\u2019.<\/p>\n

\u2018I\u2019ll be more comfortable when I see material deceleration in the data over a longer period,\u2019 she told the Bank of England Watchers\u2019 Conference in London.<\/p>\n

Last week\u2019s interest rate cut revealed a three-way split among the nine-member MPC. Five, including Bank governor Andrew Bailey, Lombardelli and Greene, voted for the 25 basis points cut.\u00a0<\/p>\n

Two backed a half-point drop and two voted to hold rates at 4.5 per cent.<\/p>\n

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\n Bank of England policymakers remain cautious over the pace of interest rate cuts<\/p>\n