BoE Governor Andrew Bailey highlighted mounting signs of economic softness in a CNBC interview, pointing to a weakening labor market and subdued investment as key headwinds. “That increase in uncertainty and predictability is definitely coming through in terms of activity and growth,” he said, citing conversations with businesses delaying capital spending.
Bailey reiterated that interest rates are likely to fall “gradually,” offering no specific guidance on the Bank’s next move in August, saying only, “We’ll see.” His tone leaned more dovish, noting that the labor market is “softening” and that this weakness is becoming more visible. Although BoE continues to monitor for sticky inflation, Bailey placed stronger emphasis on downside risks to growth and investment sentiment.
