UK Central Bank Governor: Unlikely to Support Rate Cut in August, But Does Not Rule Out Future Possibility of Rate Cuts

On July 10, Jinshi data reported that Peter, the chief economist of the Central Bank of England, said on Wednesday that the Central Bank of England may cut interest rates at some point in the future, but recent data shows that the time when inflation remains high may be longer than expected. In May of this year, the UK’s annual inflation rate fell to the Central Bank of England’s target of 2%. However, the inflation rate in the service industry was 5.7%, slightly lower than the 5.9% in April. Peter said that the strong growth in service prices and wages shows a potentially worrying strong inflation. Peter also said that although there will be new data before the meeting in August, caution and a realistic attitude should be taken regarding the extent to which this data can clarify the outlook for prices in the long term. Peter’s remarks suggest that he is unlikely to support a rate cut at the August meeting, but he does not rule out the possibility of a rate cut at some point.