Interest rates will continue to be brought down slowly even as inflation comes under control, and are unlikely to return to the near-zero rates of the previous decade, the governor of the Bank of England has said.
Andrew Bailey said he was “very encouraged” by falling inflation, which has dropped from a peak of 11.1 per cent in October 2022 to 2.2 per cent, within a whisker of the Bank’s 2 per cent target.
However, the governor, who voted to hold borrowing costs at 5 per cent at the Monetary Policy Committee’s meeting earlier this month, told the Kent Messenger, a local newspaper, that he did not expect rates to return to the ultra-low levels of the post-financial crisis 2010s.
He said: “Will we go