There is speculation that there could be two rate cuts before the likely date of the general election in October or November
Conservative MPs have urged the Bank of England to bring down interest rates as soon as possible after theBank governor Andrew Bailey fuelled hopes of a cut within the next few months after saying “we are on the way” to a downward turn thanks to a faster than expected fall in inflation last month.
Harriett Baldwin, the Conservative chairman of the Treasury select committee, said: “It is now a matter of when, not if, the independent Bank of England cuts rates. In an interview with broadcasters, Mr Bailey said last month’s fall in inflation to 3.4 per cent was “very encouraging and good news” and that inflation would not need to fall to the Bank of England’s target of 2 per cent before rates came down.
The Prime Minister’s official spokesman said: “Interest rates are rightly a decision for the independent Bank of England.
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