BoE’s Breeden: Disinflation continues, growth remains weak

Bank of England Deputy Governor Sarah Breeden has said that Britain’s labour market is weakening and economic growth remains sluggish, with disinflation continuing to unfold.

In an interview with The Sunday Times, cited by Reuters, Breeden said she saw no pre-determined path for interest rates but noted that the central bank’s stance on future rate cuts was “not a million miles away from where the market is.”

Breeden, who is viewed as a centrist on the Monetary Policy Committee, supported a 0.25 percentage point rate cut in May—part of a rare three-way split vote.

“We’ve seen unemployment rise a little bit, and in addition we’ve got relatively weak growth,” she said, pointing to signs of a loosening labour market.

Markets are currently pricing in two to three more rate cuts by year-end, aligning with recent forecasts from economists polled by Reuters.

Attribution: Reuters
Subediting: M. S. Salama