Bank of England's Andrew Bailey: 'It is far too early to be thinking about rate cuts'

Hiking cycle not necessarily over

Governor of the Bank of the England Andrew Bailey has warned that any cuts to interest rates remain a long way off, and rises could yet be seen, despite the hefty fall in inflation last month.

Speaking at the Henry Plumb Memorial Lecture, Bailey was unequivocal: "Let me be very clear: it is far too early to be thinking about rate cuts." Food price inflation drops to 15 month low Highlighting the 2.1 percentage point drop seen in UK CPI over October, Bailey said while this was "welcome news, it is much too early to declare victory". "Inflation remains too high, and we need to make sure we get it all the way down to the 2% target," he added. "Monetary policy is currently restrictive in the sense that, if we maintain this stance for long enough, we will squeeze inflation ou...