Interest rates: ‘Considerably more doubt’ over future cuts, Bank of England governor warns

There is “considerably more doubt” over when future interest rate cuts can take place, the governor of the Bank of England has said.

Andrew Bailey told a committee of MPs that the risk of inflation had gone up and he was “more concerned” about weakness in the labour market.

Bank staff projections expect the main measure of inflation to rise to 4% this year – double the 2% target rate – from its current level of 3.8%.

On the prospects for further interest rate reductions this year he said: “There is now considerably more doubt about when and exactly how quickly we can make those further steps. That’s the message I wanted to get across.”

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