Andrew Bailey claimed it was too soon to say that inflation has been beaten and too early to start talking about cutting interest rates.
Last week, inflation figures showed a group of goods and services increased in price by around 4.6% in the year to the end of October, indicating the Prime Minister’s target to halve inflation had been reached.
The reading was the lowest it had been for two years.
The Bank of England has increased rates over the past two years in an attempt to help get inflation under control.
READ MORE: Andrew Bailey warns it’s ‘too early’ to consider dropping interest rates
Mr Bailey said: “While the inflation data for October released last week was welcome news, it is too early to declare a victory.
“Inflation remains too high and we need to make sure we get it all the way down to the 2% target.”
Mr Bailey said the Bank of England’s interest rates are currently “restrictive” which means that they are helping in bringing down inflation.
He continued: “If we maintain this stance for long enough, we will squeeze inflation out of the system.
“That is what we will do.”
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This could mean that interest rates need to be increased again, should inflation prove more persistent, said Mr Bailey.
He added that interest rates would need to be restrictive for “quite some time yet”.
Mr Bailey stressed: “Let me be very clear –it is far too early to be thinking about rate cuts.”
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