Bailey Says BOE Shouldn't Cut Too Quickly or by Too Much

Watch Bailey Says BOE Shouldn't Cut Too Quickly or by Too Much - Bloomberg on Dailymotion

Transcript

00:00So today we've cut bank rates by 0.25 percentage points to 4%.

00:05There's been substantial disinflation over the past two and a half years,

00:10supported by the restrictive stance of monetary policy.

00:15Domestic price and wage pressures have generally continued to abate in recent months,

00:20and that's allowed us to take another step today in reducing bank rates.

00:25But the picture is more complex than that.

00:27But headline inflation rose to 3.6% on the latest data for June,

00:34owing to increases in energy, food, and administered prices.

00:38Now, we have been expecting this move up.

00:40Indeed, I referred to it at the last press conference we had in May.

00:45We think that inflation will increase to around 4% in September.

00:50Our job is to ensure that inflation falls back to the 2% target once these temporary factors pass,

00:55as we expect to see.

00:56So it remains important that we do not cut bank rate too quickly or buy too much.

01:00So it's not going to be a lot of money.

01:01So it's not going to be a lot of money.

01:02So it's going to be a lot of money.

01:03So it's going to be a lot of money.

01:04So it's going to be a lot of money.

01:05So it's going to be a lot of money.

01:06So it's going to be a lot of money.

01:07So it's going to be a lot of money.

01:08So it's going to be a lot of money.

01:09So it's going to be a lot of money.

01:10So it's going to be a lot of money.

01:11So it's going to be a lot of money.

01:12So it's going to be a lot of money.

01:13So it's going to be a lot of money.

01:14So it's going to be a lot of money.

01:15So it's going to be a lot of money.