RUSHES: Bank of England press conference

Bank of England press conference; ENGLAND: London: Bank of England:INTClare Lombardelli (Deputy Governor for Monetary Policy, Bank of England), Andrew Bailey (Governor of Bank of England), Katie Martin (Head of Media and Stakeholder Engagement) and Dave Ramsden (Deputy Governor for Markets and Banking) press conference question and answer session SOT Q: Do you think rate cuts are having a big enough impact on growth. So, we tend to think that policytakes a year to 18 months to have an impact, but we're a year after the first rate cut. We've had fivesince then. I'm thinking of some areas like the mortgage market, for instance. Do you think thatwe're actually continuing to see the impacts of tightening even as policy is easing?Andrew Bailey (Governor of Bank of England) answering question SOT A: Well, a couple of things on that. That's a good question. So of course, to make that judgment, you'd have to sort of form a view on what the, what the path of growth would have been had we obviously not changed interest rates, to assess how much. But the second thing I'd say is I think there are two areas to look at which and there are obviously two very central areas actually, to this question, to in a sense describe the answer to your question, and that's consumption and investment.So, start with consumption. I mean it is the case. And we describe it in the report, and I refer to it inmy remarks that the saving rate has been higher now for longer than we expected it to be. And ofcourse, the consequence of that is given real incomes, given, Szu's question, is, we've got we've gotconsumption path is weaker than we thought it would be. Which obviously feeds through to growth.,to your point. So, this question about why the savings rate remains higher than we thought it wouldbe, we do expect it to we continue to expect it to, in a sense, come back to more normal levels. But ithas remained higher. We've offered some views in the report as to wh...