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) arrive into press conference / Andrew Bailey (Governor of Bank of England) opening remarks SOT- Today, we have cut Bank rate by 0.25 percentage points, to 4%.There has been substantial disinflation over the past two and a half years, supportedby the restrictive stance of monetary policy. Domestic price and wage pressureshave generally continued to abate in recent months. That has allowed us to takeanother step in reducing Bank Rate today.But the picture is more complex than that. Headline inflation rose to 3.6% in thelatest data for June, owing to increases in energy, food and administered prices. Wehave been expecting this move up. And we think inflation will increase to around 4%in September.Our job is to ensure that inflation falls back to the 2% target once these temporaryfactors pass, as we expect to see. So it remains important that we do not cut BankRate too quickly, or by too much.Today’s decision is based on three key judgements on the outlook for the UKeconomy and inflation – and our assessment of the risks around them. I will set outeach of these key judgements in turn, before concluding with the implications formonetary policy.The first key judgement is that disinflation in underlying domestic price and wagepressures is generally continuing, albeit to different degrees. Headline inflation islikely to pick up slightly further in the coming months. But we do not expect thisincrease to persist.Chart 1 shows the development of twelve-month consumer price inflation since 2021(white line) along with its components (coloured bars). The largest driver of the risein headline inflation over the past year has b...