Bank of England could cut base rate if jobs market continues to slow

The Bank of England could make cuts to interest rates if the jobs market slows down, Andrew Bailey has said.

Businesses are “adjusting employment” as a result of Chancellor Rachel Reeves’ decision to raise national insurance contributions (NICs) for employers, the governor of the Bank also told The Times.

Companies are “also having pay rises that are possibly less than they would have been if the NICs change hadn’t happened”, Mr Bailey said.

I really do believe the path is downward Andrew Bailey, Bank of England governor

In an interview with the newspaper, the governor said the British economy was growing behind its potential.

This could open up “slack” to bring down inflation, he said, meaning prices on goods would rise less swiftly compared with earnings in future.

Mr Bailey said