Bank of England Governor Andrew Bailey hinted at potential interest rate cuts, stating a 'downward path' is likely. This follows recent economic contraction and signs of businesses adjusting employment and pay. Bailey emphasizes a 'gradual and careful' approach, despite inflation remaining above target. Current rates stand at 4.25%, with the next review on August 7th. Larger cuts are contingent upon a job market slowdown.

Prepared by Christopher Adams and reviewed by editorial team.