BoE: We need to see evidence inflation is going down
The Governor of the Bank of England has said that he needs to see evidence that inflation “sustainably on the downward path” before considering reductions of interest rates. The Bank of England has raised interest rates for the 14th time in a row as it signalled that borrowing costs could stay high for a prolonged period of time to keep a lid on inflation. Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Transcript
00:00 What we've said today is that policy is operating to restrict inflation.
00:05 Now, there are a number of paths from here.
00:09 So one path, the market thinks we're going to have to do some more,
00:13 and then it's going to come down.
00:14 We also showed a path where we kept the rate as it is today.
00:18 All of them actually led to inflation being back at target.
00:21 I'm not going to judge where we go from here.
00:23 We need to see more evidence that inflation is sustainably on the downward path.
00:28 I hope we'll get there and I hope we'll get there soon.