The Bank of England is closely monitoring core inflation, which reached 3.5% in November, as it considers interest rate adjustments. Governor Andrew Bailey suggested a cautious approach to rate cuts, emphasizing the need for inflation control. Recent UK Budget policies may lead to slight increases in inflation, impacting future decisions. The Bank is anticipated to maintain the current rate of 4.75% in the upcoming December meeting, as the OECD predicts prolonged higher rates due to these fiscal measures.