When will interest rates come down?published at 11:10
Michael Race
Business reporter, BBC News
There’s been a lot of noise about when the Bank of England will start cutting interest rates – but to be honest, no-one knows for sure.
When we last spoke to the Bank’s governor, Andrew Bailey, he told us the UK was “on the way” to a cut, but a firm decision is yet to be made.
Today the expectation from economists is that rates will be kept at 5.25% as the Bank looks to see inflation, the rate at which prices rise, drop further.
But what has changed is the Bank’s optimism. Bailey sounded far more dovish, telling us in March that “we don’t have to actually get inflation all the way back to target… to cut rates for instance, what we have to do is be convinced that it is going there”.
Most economists are forecasting a first interest rate cut in the summer.