LONDON (Reuters) - Bank of England Deputy Governor Minouche Shafik said the chances of a further interest rate cut by the British central bank this year would hinge on the strength of incoming economic data.
Shafik said in a speech on Wednesday that a further loosening in monetary policy would probably be needed "at some point" but did not repeat language the central bank used earlier this month which pointed to a rate cut this year.
Asked after her speech if a rate cut was possible at the BoE's next rate meeting in November, Shafik said: "If we have data prior to that which signals that stimulus is needed, we will obviously act on that."
Any changes to the government's fiscal policy - which will only become clearer later in November - would also be important, Shafik said, and she added that the longer-term economic outlook still pointed to a slowdown.
"I would much rather be on the front foot and act preemptively...than be on the back foot and do too little too late," she said.