In light of recent economic indicators, Bank of England governor Andrew Bailey announced a future of gradual interest rate cuts. While the headline Consumer Price Index (CPI) stands at 1.7%, below the 2% target, core inflation presents a more complex picture, having dropped slightly to 3.2%. The International Monetary Fund cautioned that lasting inflation could necessitate prolonged high interest rates in the UK and US. Bailey emphasized the need for careful rate management to ensure inflation remains stable without rapid cuts that could disrupt economic growth.