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Bank of England anticipates progress in inflation control after rate cut
Andrew Bailey, Governor of the Bank of England, expressed optimism regarding the prospects of returning inflation to the target level in the coming months following the recent interest rate cut by the central bank.
Speaking on BBC Radio 4, Bailey stated that by the end of spring next year, inflation is likely to be quite close to the target level of 2%. His comments came a day after the Bank of England decided to lower interest rates. Bailey noted that the decision on monetary policy was driven by growing confidence in a sustainable downward trend in inflation.
He mentioned that the central bank is observing sufficient signs of decelerating price growth, making the current moment suitable for easing policy. However, Bailey emphasized the need for greater caution as interest rates approach neutral levels. He noted that while there are reasons to expect further rate cuts, the approach to monetary policy should increasingly become more measured.
As the Bank of England moves toward interest rates where inflation will not be excessively high or low, Bailey stated that the bank will act with increasing caution.
Published 24 December 2025
© InstaFintech Group
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© InstaFintech Group
