BoE's Breeden Says June, July Rate Hikes Unneeded as Bank Reconsiders 40% Stablecoin Reserve Rule
Updated
Updated · Reuters · May 14
BoE's Breeden Says June, July Rate Hikes Unneeded as Bank Reconsiders 40% Stablecoin Reserve Rule
3 articles · Updated · Reuters · May 14
June and July rate increases are not needed, Deputy Governor Sarah Breeden told the Financial Times, though she left open the possibility of tightening later.
Breeden said the Iran conflict looks less likely to trigger the kind of second-round inflation effects seen after Russia's 2022 invasion of Ukraine, giving the Bank of England time to watch the economy.
The comments follow the BoE's decision last month to hold rates steady for a third straight meeting, with policymakers still split over the path for borrowing costs.
Breeden also said the central bank is re-examining parts of its stablecoin regime after industry criticism of proposals including a 40% non-interest-bearing reserve requirement and holding caps of 20,000 pounds for individuals.
As the Iran crisis fuels UK inflation, is the Bank of England's rate-hike pause a dangerous gamble?
With BoE officials divided on interest rates, what is the true stagflation risk for the UK economy?
The US is promoting stablecoins. Will the UK's revised regulations create a rival or a laggard?