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Andrew Bailey claimed it was too soon to say that inflation has been beaten and too early to start talking about cutting interest rates.<\/p>\n
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\u2019s target to halve inflation had been reached.<\/p>\n
The reading was the lowest it had been for two years.<\/p>\n
The Bank of England has increased rates over the past two years in an attempt to help get inflation under control.<\/p>\n
READ MORE: <\/strong> Andrew Bailey warns it’s ‘too early’ to consider dropping interest rates<\/strong><\/p>\n Mr Bailey said: \u201cWhile the inflation data for October released last week was welcome news, it is too early to declare a victory.<\/p>\n \u201cInflation remains too high and we need to make sure we get it all the way down to the 2% target.\u201d<\/p>\n Mr Bailey said the Bank of England\u2019s interest rates are currently \u201crestrictive\u201d which means that they are helping in bringing down inflation.<\/p>\n He continued: \u201cIf we maintain this stance for long enough, we will squeeze inflation out of the system.<\/p>\n \u201cThat is what we will do.\u201d<\/p>\n Don’t miss… <\/strong> This could mean that interest rates need to be increased again, should inflation prove more persistent, said Mr Bailey.<\/p>\n He added that interest rates would need to be restrictive for \u201cquite some time yet\u201d.<\/p>\n Mr Bailey stressed: \u201cLet me be very clear \u2013it is far too early to be thinking about rate cuts.\u201d<\/p>\n
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