UK’s inflation recovery outlook still unclear as BOE governor hints at rate cuts

The Bank of England is set to cut interest rates gradually but is closely monitoring inflation, which stands at 3.4%, above the target of 2%. Governor Andrew Bailey highlighted the importance of assessing economic data before making decisions.

Poor economic growth and rising debt costs are complicating fiscal policy. Finance Minister Rachel Reeves stresses the necessity of maintaining a robust fiscal framework to stabilize public finances and combat inflation, facing pressures from limited tax revenues.