Image source, PA Media Image caption, The Bank is concerned about the “potential perseverance of inflation”, Andrew Bailey stated By Dharshini David & Sam Gruet Chief economics reporter & organization pressreporter, BBC News UK inflation may not fall as rapidly as some are hoping, the guv of the Bank of England has cautioned. Andrew Bailey informed MPs that Bank policymakers were more anxious about the rate of rate increases staying high than monetary markets appear to be. Speaking to the Treasury Committee he stated the Bank was worried over the “potential perseverance” of inflation. Inflation fell to 4.6% in October from 6.7% in September, according to authorities figures. That drop – determined by the Consumer Prices Index (CPI) – triggered the federalgovernment to claim it had satisfied its inflation target early, havingactually vowed to bring down the level to listedbelow 5.4% by the end of the year. Speaking ahead of the Autumn Statement on Wednesday, and as speculation installs about possible tax cuts, Chancellor Jeremy Hunt stated: “We fulfilled our promise to cutinhalf inflation, however we needto keep on supporting the Bank of England to drive inflation down to 2%. That indicates being accountable with the country’s financialresources.” Mr Bailey informed the Treasury Committee that the fast fall in inflation was excellent news, however that it might take some time before the Bank’s target of 2% was struck. “We are worried about the prospective determination of inflation as we go through the rest of
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