In a recent announcement, Bank of England Governor Andrew Bailey indicated that interest rates may be gradually reduced, despite the current Consumer Price Index (CPI) of 1.7% being below the 2% target. He highlighted the importance of core inflation, currently at 3.2%, as a better gauge for long-term trends. The International Monetary Fund (IMF) warned of persistent inflation pressures, suggesting rates may remain high longer. Bailey noted that while more aggressive cuts could be possible if inflation stabilizes, caution is essential to keep it near the target level.