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BoE’s Greene sticks to view that rate cuts should be gradual

2024.10.21 11:20

LONDON (Reuters) – Bank of England interest rate-setter Megan Greene said she still believed the central bank should take a cautious approach to cutting borrowing costs.

Greene, writing in a column published in the Financial Times on Monday, said it was possible that consumption could be stronger or weaker than expected.

“Given these risks, I believe a cautious, gradual approach to monetary easing is appropriate,” she wrote.

Greene said in September the BoE should take a cautious approach to cutting borrowing costs due to the risk of longer-term inflation pressures.

BoE Governor Andrew Bailey said earlier this month that the BoE could move more aggressively to cut interest rates if inflation pressures continued to weaken.

© Reuters. FILE PHOTO: A view of the Bank of England building, in London, Britain July 3, 2024. REUTERS/Maja Smiejkowska/File Photo

Data last week showed British inflation fell below the BoE’s 2% target and underlying inflation pressures, which are closely watched by the central bank, also dropped.

Investors are pricing a quarter-point cut in Bank Rate as a near certainty at the BoE’s November meeting and they are also betting heavily on another 25 basis-point reduction in December.



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