Bank of England (BoE) Deputy Governor Ben Broadbent said on Monday that it was possible that the BoE could cut the policy rate this summer, per Reuters. 

"If things continue to evolve with its forecasts - forecasts that suggest policy will have to become less restrictive at some point - then it's possible Bank Rate could be cut some time over the summer," Broadbent noted.

Key takeaways

"We are not on a knife-edge where any rate cut would produce above-trend growth, policy would still be restrictive."

"Experience of past 2-3 years has made MPC members wary about cutting rates."

"Signs of inflation pressures easing is reassuring."

"It is a matter of individual opinion on MPC how much evidence needed for rate cut."

Market reaction

GBP/USD showed no immediate reaction to these comments and was last seen moving sideways at around 1.2700.