‘Far too early’ to propose UK interest rate cuts, says Bank of England governor

‘The MPC’s latest projections indicate that monetary policy is likely to need to be restrictive for quite some time yet,’ Bailey said. Photograph: Reuters

UK interest rates will need to stay high for some time despite the sharp fall in the annual inflation rate, the governor of the Bank of England has warned.

Andrew Bailey used a speech in London on food prices to say there was more work to do to bring inflation back to its 2% target – and there remained a risk that borrowing costs might need to increase in the coming months.