What did Bank of England Governor Andrew Bailey say about the possibility of interest rate cuts despite falling oil prices?

Governor Andrew Bailey stated that rate cuts are 'not on the table at the moment', reiterating that they were already ruled out in March and remain off the table despite oil prices falling back near pre-Iran war levels; he emphasized the Bank is not in a position to consider cutting rates and does not need to rush into policy decisions, preferring to wait and assess how the earlier oil price surge — now receding — affects the UK economy.

Why did Bailey criticize oil and gas futures prices as a policy guide, and what broader challenge does this reflect?

Bailey called oil and gas futures prices 'terrible indicators in history' and said they fail to provide a reliable guide for energy price developments; he noted this uncertainty compounds the difficulty of policymaking, adding that 'everything else is also a terrible indicator', highlighting the Bank’s longstanding struggle to identify trustworthy data for assessing inflationary pressures and economic trends.

Bank of England's Bailey Says Rate Cuts Not Back on Table Despite Falling Oil Prices

Jul 1, 2026

Bank of England Governor Andrew Bailey confirmed that interest rate cuts are currently off the table, despite oil prices retreating near pre-war levels. He emphasized the difficulty in using oil and gas futures as reliable economic indicators for policy decisions.

reuters

2026-07-01

Bank of England's Bailey Says Rate Cuts Not Back on Table Despite Falling Oil Prices

Bank of England's Bailey Says Rate Cuts Not Back on Table Despite Falling Oil Prices

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