Interest rate cuts may become ‘more aggressive’ – London Business News | Londonlovesbusiness.com

The Bank of England governor has said that inflation is now steady and interest rate cuts may “become more aggressive.”

After Andrew Bailey told the Guardian newspaper there could be cuts in the base rate which sparked the pound falling by almost 1% against the dollar and euro.

Kathleen Brooks, research director at XTB said, “The market has used Mr Bailey’s comments as a green light to price in more monetary loosening.”

Bailey also told the Guardian that they are “closely” monitoring the events in the Middle East as the cost in oil surged this week.

He said, “Geopolitical concerns are very serious.

“It’s tragic what’s going on.

“There are obviously stresses and the real issue then is how they might interact with some still quite stretched markets in places.”