Pound drops after Bank of England says it could cut interest rates more if jobs market slows | Bank of England

The governor of the UK Bank said that if the labor market slows down very quickly, it could make greater deductions in interest rates, the Pound fell to the lowest level of three weeks.

Andrew Bailey said that “Slack ında was opened in the UK economy because higher taxes are boring employers.

He said times “I really believe that the road is down” for interest rates. The bank ratio was 4.25%after four quarters of points last year, and the bank is planned to make another decision on 7 August.

Bailey said: “If we see the opening of the gap much faster, this will lead us to a different result.

“I think the road [for interest rates] fell. I really believe that the road is down, but we continue to use the words ‘gradual and careful’ because… Some people me ‘Why do you cut over the goal of inflation?’

Inflation in the UK slightly lightened from 3.5% to 3.4% in May in April, but still significantly above the bank’s 2% target.

On Monday, Pound fell 0.2% after Bailey’s words, the lowest level since June 23 – to $ 1,3467.

Investors also increased their expectations in August that a ratio would decrease, and the money markets showed that there was a deduction of 85% from 76% at the end of last week.

Central Bank President, Rachel Reeves’ decision to increase taxes on employers, companies “employment and hours arranged, and also if it were, probably less wage increases, he said. [national insurance contributions] There has been no change ”.

The chancellor reached businesses with an increase of 25 billion pounds in the national insurance contributions introduced in April and an increase of 6.7% in national life fees.

Bailey’s proposal to the government’s proposal to lower rates on the horizon and reduced inflation, as it faces pressure to improve the living standards of the government.

Last week, official data showed that the economy unexpectedly decreased by 0.1% unexpectedly and fed with sharp decreases in production and construction. In April, the second month in GDP, when the economy weakened after a decrease of 0.3%, pointed out.

Reeves’ tax and expenditure plans are restricted by reducing borrowing costs and growth forecasts. Chancellor taxes increased the date of 40 billion pounds in his budget last October, but critics argued that strict financial rules gave the small ceiling gap.

The margin of 10 billion pounds was prepared to delete before the spring declaration in March, and a struggle for savings that led to disability aids that the labor fell after a backbench rebellion.

The chancellor is expected to increase taxes in the autumn budget to close the gap on disability benefits of U-Dönüşler and winter fuel allowance and weak economic forecasts.

Bailey’s words also found that the recruitment of the UK businesses fell to the fastest speed in about two years.

Recruitment and Employment Confederation Trade Organ and KPMG, personnel usability indices since November 2020, the highest reading in May in May 63.3 to 66.1, he said.