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  • 6 weeks ago
The Bank of England has cut interest rates and signalled that borrowing costs are likely to fall further in 2026. Governor of the Bank of England Andrew Bailey says. Report by Kennedyl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Transcript
00:00Well, first of all, I've been very encouraged by the progress that we've made on inflation.
00:06I've been saying for some time that we had this, what we call, hump up this year.
00:12I thought it was going to come down, and it has, and the good news is it's actually coming down a bit faster than I think we thought it would.
00:19I'm particularly pleased because there's been an easing of food price inflation, which is really very important.
00:24I mean, all inflation is important, but we know that food is salient, it's very salient,
00:27and, of course, it hits those on lower incomes a lot as well.
00:32I think now that we're on a path where we'll probably be around this level for a few months,
00:38but we think that come the spring, April, May time, we should see another quite sharp drop and take us, I hope, to around target.
00:48So we're going to come back to target sooner than we thought, so that's encouraging.
00:51All of this is very encouraging, and for me, certainly, it was a strong basis to cut today.
00:59Okay.
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