UK

Bank of England signals August rate cut amid growing votes to ease interest

Regulator held interest rates at a 16-year high of 5.25 per cent on Thursday

Forecasts released with Thursday’s decision suggested the BOE will have to reduce rates in the coming months, probably before a general election widely expected in the autumn. Picture: Getty

The Bank of England (BOE) edged closer to cutting interest rates from a 16-year high after a second policymaker voted for lower borrowing costs and governor Andrew Bailey said he was “optimistic that things are moving in the right direction.”

Dave Ramsden, the regulator’s deputy governor, joined external member Swati Dhingra in calling for an immediate cut in the base rate from its current level of 5.25 per cent. The other seven members of the ...