Bank of England (BoE) Governor Andrew Bailey explains the decision to lower the policy rate by 25 basis points to 5% in August and responds to questions from the press.

Key takeaways

"Businesses do talk to us quite a lot about higher minimum wage."

"Higher minimum wage has not led to bad news from our perspective."

"Firms regularly make point about higher minimum wage leading to compressed pay scales."

"Mortgage rates had already priced in a rate cut by the BoE this month or next."

"Mean path for inflation which incorporates upside risks much closer to 2% target than median forecast."