Bank of England’s Bailey expects inflation near 2% target by late spring

Investing.com -- Bank of England Governor Andrew Bailey expressed optimism about inflation reaching the central bank’s target in the coming months, following the central bank’s recent interest rate cut.

Speaking on BBC Radio 4’s Today programme on Friday, Bailey said: "I’m fairly optimistic that by late spring next year will probably quite near to our 2% target."

The governor’s comments came after the Bank of England implemented a rate cut on Thursday. Bailey explained the rationale behind the monetary policy decision, stating: "We are seeing much more confidence in a downward path and I think therefore that it’s appropriate at this point that we cut."

While expressing confidence in continued disinflation, Bailey cautioned that the central bank would need to proceed with greater caution as rates approach the neutral level.

"There’s good reason to expect a bit more of a downward path," he said, adding that as rates get closer to a level where inflation is neither too high nor too low, "we’re going to have to get more and more careful about how we approach it."

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