Hope for summer rate cut

THE Bank of England's top economist has boosted hopes of lower borrowing costs, after saying it is "not unreasonable" to expect the Bank to consider cutting interest rates over the summer.

Huw Pill, the Bank's chief economist, told an online event organised by the accountancy body ICAEW that the Bank could consider cutting rates if inflation continues to ease off.

The pound fell 0.2% against the United States dollar and the euro.

Mr Pill said: "I think it's not unreasonable to believe that through the summer we will begin to see enough confidence in the decline in persistence that bank rate will come into consideration."