Bailey speech: Expect four UK rate cuts next year as inflation eases
04.12.2024, 09:06

Bailey speech: Expect four UK rate cuts next year as inflation eases

Bank of England (BoE) Governor Andrew Bailey spoke in a pre-recorded interview at the Global Boardroom Digital Conference hosted by the Financial Times (FT) on Wednesday.

Key quotes

Expect four UK rate cuts next year as inflation eases.

We emphasised the word gradual on the outlook for rates.

Disinflation process is well embedded but we have further to travel.

We look at fiscal tightening in the budget, but the key is the response of employers to national insurance increases.

Inflation impact of higher trade tariffs is not straightforward at all.

We are beyond the point of responding to issues in financial sector by introducing new regulation.

Market reaction

At the time of writing, GBP/USD is losing 0.21% on the day to trade near 1.2640, having come under renewed selling pressure following these dovish comments.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.17% 0.20% 0.72% 0.06% 0.98% 0.60% 0.13%
EUR -0.17%   0.03% 0.55% -0.11% 0.80% 0.42% -0.05%
GBP -0.20% -0.03%   0.53% -0.14% 0.77% 0.39% -0.08%
JPY -0.72% -0.55% -0.53%   -0.67% 0.24% -0.15% -0.60%
CAD -0.06% 0.11% 0.14% 0.67%   0.92% 0.54% 0.07%
AUD -0.98% -0.80% -0.77% -0.24% -0.92%   -0.38% -0.85%
NZD -0.60% -0.42% -0.39% 0.15% -0.54% 0.38%   -0.47%
CHF -0.13% 0.05% 0.08% 0.60% -0.07% 0.85% 0.47%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

 

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