Gertjan Vlieghe, a former Bank of England policymaker, has criticized Governor Andrew Bailey for hindering important discussions on the future of interest rates.
Vlieghe stressed the need for rate-setters to determine when to stop cutting rates and emphasized the significance of identifying the neutral interest rate, or r*.
The Bank of England has currently reduced borrowing costs from 5.25% to 4.75%, and market expectations suggest a further decline to 4% by the end of 2025. This uncertainty surrounding monetary policy could cause confusion among investors and stakeholders regarding the central bank's long-term strategy.