LONDON DAILY ARCHIVE

BoE's Bailey Acknowledges Challenges in Achieving 2% Inflation, Calls it 'Hard Work'

Bank of England Governor Andrew Bailey has stated that reducing inflation to the bank's goal of 2% will require significant effort. Much of the recent decrease in inflation is attributed to the reduction in last year's elevated energy costs. According to an interview with ChronicleLive, Bailey emphasized that further reductions must come from policy, particularly monetary policy, which is currently constraining the economy.

28 November 2023 · 04:48 UTC

Despite holding interest rates steady this month after a series of hikes to combat high inflation, the Bank predicts a return to 2% inflation by late 2025. Bailey is aware of the strain higher interest rates place on households and resists speculation about rate cuts in the near future. Financial markets suggest the Bank may cut rates by September next year.