By Paul Hannon
The Bank of England is likely to cut its key interest rate over the coming months, but exactly when is uncertain, the incoming deputy governor for monetary policy said Tuesday.
Appearing before lawmakers at a confirmation hearing, Clare Lombardelli said an easing of monetary policy is clearly "the direction of travel" across Europe, but declined to comment on the exact timing of a first reduction in the BOE's key rate.
Lombardelli, who will cast her first vote as a rate setter in August, said she would be alert to data on services prices and wages as signs that inflation may pick up again, while acknowledging that policy is becoming more restrictive as headline inflation eases.
"The labor market is absolutely critical," she said.
Lombardelli will join the bank from the Organization for Economic Cooperation and Development, where she has been chief economist. Before that, she worked for the U.K. Treasury.
The BOE left its key rate unchanged at a 16-year high in March, and signaled that it is likely to cut later this year, while giving little guidance on the exact timing.
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
04-16-24 0617ET
