According to Shenchao TechFlow news, on December 4, Bailey of the Bank of England said on Wednesday that if the UK economic outlook is confirmed, the Bank of England expects to cut interest rates four times next year. He welcomed the recent decline in inflation, stating that the pace of inflation's decline has exceeded policymakers' expectations from a year ago.
Bailey stated, "We always release data based on forecasts of market interest rates, so as you said, this is actually the market's view." He added, "We have been looking at some potential paths for the future, some of which are better than others."
The UK's inflation rate has fallen far below the peak of 11.1% at the end of 2022, with a price increase of 2.3% in October, above the official target of 2%. Bailey indicated that while various inflation scenarios could emerge, the core forecast in the latest monetary policy report suggests it will seek gradual rate cuts.
At the time the Governor of the Bank of England made the above remarks, the OECD predicted that due to the UK's economic growth and inflation outlook, the Bank of England would not be able to cut interest rates significantly like the Federal Reserve and the European Central Bank.