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  • 7 minutes ago
Bank of England Governor Andrew Bailey has defended the decision to hold UK interest rates at 3.75 per cent. While he welcomed the Middle East peace deal as "encouraging news", he still thinks inflation needs to come back down to two per cent.
Report by Johals. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Transcript
00:00Well, we have had encouraging news. I mean, I'm very encouraged.
00:04We've obviously got now this understanding about what's going to happen in the Middle East.
00:11But, and energy prices have come down quite a lot, but they're still above where they were before this conflict
00:18started.
00:19Inflation is higher than we expected it to be.
00:22I really expected, and I really believe, we would have been back at the 2.2% target by now.
00:26But it is good news.
00:28But, of course, now what we've got to do is get it back to 2%.
00:32I think holding is the right position to be in at the moment for that.
00:36So I think it's a sensible decision in the light of the news.
00:40I'm encouraged, but we've now got to get inflation back down to 2%.
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