BOE’s Bailey: Inflation has come down a long way

• I’m very encouraged that the path of inflation is downwards
• Hence, I do think the path for interest rates will be downwards as well, but gradually
• My best guess is interest rates will settle at a “neutral rate”

Bailey adds to the mix of central bank heads with some commentary already so far today. The headline is meant to be taken in context of where inflation was at the end of 2022 and early 2023. For the time being though, they’re still wary after having left the bank rate unchanged last week. That follows from their finely balanced rate cut in August here.

This article was written by Justin Low at www.forexlive.com.