Has the Bank of England forgotten what its job is?

The Bank of England has cut interest rates to 4 per cent. Threadneedle Street’s Monetary Policy Committee (MPC) has just voted five to four, after a revote, for what is the third cut this year. This takes interest rates back down to levels not seen since the beginning of 2023. Concerns about an increasingly slack labour market seem to have driven the MPC’s decision.

A second vote was required – the first since 1998 – because initially four members of the committee voted for a 0.25 per cent cut but one member voted for a larger cut of 0.5 per cent. Markets expect the rate to be cut once more to 3.75 per cent before Christmas.

Governor Andrew Bailey sounded cautious, saying: ‘We’ve cut interest rates today, but it was a finely balanced decision. Interest rates are still on a downward path,