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2025-09-18 23:32:57
[Governor Bailey: The Bank of England's rate-cutting cycle is not over yet] Bank of England Governor Andrew Bailey said the Bank of England is not over its rate-cutting cycle yet, and pointed out that a cooling job market could pose risks. After the Monetary Policy Committee voted 7 to 2 on Thursday to maintain interest rates at 4%, Bailey said that "risks remain on both sides," emphasizing rising inflation and a weakening labor market. "I still believe there will be further rate cuts, but I think the timing and scale of these cuts are more uncertain now than before August," he said. "We are also seeing continued softening in the labor market, and of course, that risk could increase further. This is a risk, not a core expectation." Investors are betting on a less than 30% chance of a 25 basis point rate cut by the end of this year, and have fully priced in only one rate cut for next year.
