Bank of England may cut rates more aggressively as inflation eases, warns Andrew Bailey

Andrew Bailey emphasized, 'There's a possibility we could be a bit more aggressive in lowering rates if inflation keeps dissipating,' highlighting potential changes in interest rate policy.

Bailey expressed concerns about escalating Middle Eastern tensions, stating, 'The conversations I've had with counterparts in the region suggest there's currently a strong commitment to keep the market stable,' but cautioned about oil price impacts.

Reflecting on historical oil crises, Bailey warned, 'Control over oil markets could deteriorate if the conflict worsens,' which could lead to significant monetary policy challenges.

Despite a notable decrease in UK inflation from a peak of 11.1% to 2.2%, Bailey pointed to rising oil prices, warning they might reverse progress.

Read at Business Matters