The Bank of England’s Chief Economist, Megan Lombardelli, stated that additional evidence is required before considering a rate cut, highlighting ongoing concerns about inflation and economic stability. Speaking on the state of monetary policy, Lombardelli emphasized the need for more clarity on price trends and labor market resilience before altering the Bank’s stance.
While the UK economy shows signs of slowing, the BoE remains cautious about easing rates too soon, citing the risk of prematurely abandoning its inflation-targeting measures. Core inflation remains a key focus, as policymakers balance economic growth with price stability. This measured approach signals that any rate cuts may take longer to materialize, dampening speculation of immediate policy shifts.
