Bank of England boss Andrew Bailey forecasts big inflation drop – boosting rate cut hopes [Video]

Updated 05:38 EDT 18 Apr 2024

The Bank of England’s governor last night forecast another big drop in inflation after it fell to the lowest level since September 2021.

Slower rises in food prices helped Consumer Prices Index inflation drop to 3.2 per cent last month from 3.4 per cent in February.

And Andrew Bailey told fellow bankers in Washington that the gauge is likely to see a steep fall when April’s figures are published.

‘I expect the next month’s data will show quite a strong drop because of the impact of changes in energy pricing,’ he said during a conference hosted by the Institute of International Finance.

His optimism is certain to increase speculation that Britain could move ahead of the United States by cutting interest rates from the current level of 5.25 per cent sooner rather than later.