LONDON, Sept 19 (Askume) – Bank of England Governor Andrew Bailey said on Thursday he is “optimistic” that inflation pressures will be enough to keep the central bank from cutting interest rates further, but he declined to comment on the timing.
He told the broadcaster: “I think we are now slowly coming down. That’s good news. I think interest rates will come down. I’m optimistic about that, but we need to see more evidence.”
Bailey said he was not concerned about any changes to the government’s budget rules to deal with the deficit from the Bank of England’s bond selling program, saying it would have no impact on the Bank of England’s stimulus decisions.
Earlier on Thursday, the Bank of England kept its key interest rate unchanged at 5% after a 5-4 vote to cut rates in August and said it would increase its holdings of government bonds by 100 billion pounds over the next 12 months.
