Bailey wants to cut rates but markets have other ideas


FILE PHOTO: Andrew Bailey, Governor of the Bank of England, gestures as he addresses the media during a press conference at the Bank of England in London, Britain, August 1, 2024. Alberto Pezzali/Pool via REUTERS/File Photo

LONDON: Bank of England (BoE) interest rate cuts are not feeding through to borrowing costs for households and the government, making it harder for Chancellor Rachel Reeves to deliver the economic growth she has promised and repair the public finances.

The United Kingdom has seen swap rates and gilt yields rise since the central bank began its easing cycle in August with markets increasingly driven by events in the United States.

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