https://www.theguardian.com/business/2024/feb/14/uk-inflation-cost-of-living-crisis
The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.
Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.
Bailey said: “We slightly overshot last month and we slightly undershot this month. That leaves us pretty much where we were.”
Financial markets had been forecasting a rise in the annual inflation rate to 4.2% in January and now think the Bank will start cutting official borrowing costs from their current level of 5.25% in June.