Bank of England Governor Andrew Bailey said on Monday that the latest data on the Consumer Prices Index (CPI) "was good news", but he claimed that it is "too soon to declare victory" over inflation.
During the Henry Plumb Memorial Lecture, Bailey stated that interest rates need to remain high for long enough to bring UK inflation down to the 2% target level. "We still have a long way to go," he stressed.
The central banker warned that it is "far too early" to consider rate cuts. In addition, he explained that the duration of restrictive monetary policy "will ultimately depend on what the incoming data tell us about the outlook for overall consumer price inflation over the medium term."
