India, May 20 -- Bank of England's Deputy Governor Ben Broadbent said the interest rate could be cut some time over the summer.
The outgoing deputy governor said if things continue to evolve as expected, then the policy will have to become less restrictive at some time.
He observed that the direct effect on inflation of the pandemic and the Ukraine war has faded. The economy is undergoing more persistent, second-round effects of earlier surge on domestic inflation, Broadbent noted.
"However, how long these persist is unclear," said Broadbent.
The unwinding of the inflationary shock is likely to be asymmetric and it means that second-round effects in domestic prices and wages will take longer to unwind that they did to emerge, the banker...