Created
: 2025.02.06
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Bailey speech: We expect to be able to cut bank rate further
World FX news
Breaking news
Bailey speech: We expect to be able to cut bank rate further
New
2025.02.06 21:37
2025.02.06 21:37
2025.02.06 21:37
Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
Key quotes
"We expect to be able to cut bank rate further but we will have to judge meeting by meeting how far and how fast."
"Road ahead will have bumps."
"Behind uptick in headline inflation stands a continued, gradual easing of underlying inflationary pressures."
"This is the backdrop to our withdrawal of restrictiveness, and to our decision today."
"Coming rise in inflation almost entirely due to factors not directly linked to pressures in the UK economy."
"We expect these factors to be temporary."
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve 'price stability', or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England's target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects - a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets - usually government or AAA-rated corporate bonds - from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
Last updated
: 2025.02.06
Related articles
EUR/GBP rallies to near 0.8380 after BoE's dovish interest rate decision
2025.02.06 23:06US: Initial Jobless Claims rose to 219K last week
2025.02.06 22:54GBP/USD slides further after expected BoE rate cut - Scotiabank
2025.02.06 22:45EUR/USD: Ignores stronger German Factory Orders data - Scotiabank
2025.02.06 22:41CAD: Spreads remain a big impediment to a stronger rebound - Scotiabank
2025.02.06 22:38USD strengthens modestly - Scotiabank
2025.02.06 22:26
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/GBP rallies to near 0.8380 after BoE's dovish interest rate decision
The EUR/GBP pair surges and posts a fresh weekly high to near 0.8380 in Thursday's North American session.
New
2025.02.06 23:06US: Initial Jobless Claims rose to 219K last week
US citizens filing new applications for unemployment insurance rose to 219K for the week ending February 1, as reported by the US Department of Labor (DoL) on Thursday.
New
2025.02.06 22:54GBP/USD slides further after expected BoE rate cut - Scotiabank
The Pound Sterling (GBP) slid in the wake of the BoE rate decision, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.06 22:45EUR/USD: Ignores stronger German Factory Orders data - Scotiabank
German Factory Orders data for December rose a solid 6.9% in the month, versus expectations for a 2.0% gain, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.06 22:41CAD: Spreads remain a big impediment to a stronger rebound - Scotiabank
The softer CAD reflects the general trend in the majors against the broadly higher USD on the session.
New
2025.02.06 22:38USD strengthens modestly - Scotiabank
The US Dollar (USD) is trading a little higher overall this morning, partially reversing three days of losses following the tariff turmoil at the start of the week, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
2025.02.06 22:26GBP/JPY dives to near 188.40 as all BoE members support 25-bps interest rate reduction
The GBP/JPY pair faces an intense sell-off and dives vertically to near 188.40 in Thursday's North American session, the lowest level seen in two months.
New
2025.02.06 22:08Bailey speech: Government commitment to long-term structural reforms will help confidence
Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
New
2025.02.06 21:52Bailey speech: Consumers are more price conscious and holding back on spending
Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
New
2025.02.06 21:43Bailey speech: We expect to be able to cut bank rate further
Bank of England (BoE) Governor Andrew Bailey speaks on the policy outlook and responds to questions from the press following the decision to lower the policy rate by 25 basis points (bps) at the February meeting.
New
2025.02.06 21:36Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
