BoE's Bailey says he will be going into the coming meetings asking if a cut is justified. Expects inflation to get back in proximity to the target in April. Rate cut at the next meeting is a genuinely open question.
Importance
Level 1
- Expects to see some scope for further policy easing, probably in 2026.
- Would have been premature to take a decision at the last meeting.
- Seeing some labour market softening.
- Rate cut at the next meeting is a genuinely open question.
- The key question is if inflation will feed into expectations, do not necessarily need to see this for a further cut.
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