Bailey: Interest rate cut was a finely balanced decision

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Bank of England governor Andrew Bailey says cutting the interest rate from 4.25% to 4% was a "finely balanced decision". Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

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00:00It was a finely balanced decision, and that's reflected in the votes.

00:04No great surprise there, to be honest.

00:06And the reason it's finely balanced is because we've got, yeah, we've got,

00:10we were saying that we thought there would be some increase in inflation.

00:13We said that back in May, said in February, I think.

00:17It's nothing like what we saw a few years ago, just to be clear.

00:22It's been a little bit more than we thought, but not a huge amount, but a little bit more.

00:26We have to watch this very carefully.

00:28There's a whole range of factors contributing to it, and they look to be temporary,

00:32but we've got to see that happen.

00:34On the other hand, context is important to judge the impact of all this.

00:39We've seen some softening, I would say, in the labour market going on.

00:43Pay has come in a little bit lower than we thought it would.

00:46So that's the context, and we have to judge.

00:48We've got one thing that looks like it's a bit on the up,

00:51and it's one thing a little bit on the down, so it's finely balanced.

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