A rate cut this year was now the most likely outcome, Bank of England Deputy Governor told the Treasury Select Committe Tuesday, while Governor Andrew Bailey said he saw signs of key inflation components easing.

The BOE officials, while making clear easing was on the way, avoided giving any clear steer on when exactly the first cut would come, with Bailey noting that the inflation forecast showed CPI falling below the 2% target before rising back above it by the end of 2024 and still above the 2% target on market rates in two years. Services inflation and pay growth both appeared to be easing and Broadbent highlighted the importance of labour market data in deciding on policy, he added. (see MNI BOE WATCH: BOE Holds, Hiking Bias Removed From Statement)

Independent member Megan Greene said needed to see a continuation of current trends to justify a cut, noting there were still risks in terms of higher wage rises. MPC member Swati Dhingra speaks at an MNI Connect event Wednesday.