Important not to cut bank rate too quickly or too much

Bank of England (BoE) Governor Andrew Bailey delivers the Monetary Policy Report and responds to questions from the press after deciding to lower the policy rate by 25 basis points at the August meeting.

Key takeaways

“Domestic wage and price pressures have generally continued to abate.”

“Important that we do not cut bank rate too quickly or too much.”

“There are good reasons not to expect rise in headline inflation to persist.”

“We should expect gradual normalisation of pay growth to feed through to lower services price inflation.”

“Risk that recent price rises could feed more inflation has come into sharper focus.”

“Must be very careful that higher food and energy prices do not lead to any second round effects on wage or price setting.”

“Consumers have been more cautious than we expected.”