Andrew Bailey, governor of the Bank of England, is interested in reducing inflation to a target of 2 percent.
(AFP or licensors)
The Bank of England is expected to keep interest rates the same, despite the drop in inflation on Wednesday.
Inflation fell to 3.4 percent in February, down from 4 percent in January and the lowest since September 2021, when it was 3.1 percent.
The positive inflation news comes ahead of the Bank of England's latest interest rate decision on Thursday, with authorities expected to keep rates unchanged at 5.25 percent.
In February, when the group met, only one of them, Swati Dhingra, voted in favor of reducing rates, two voted in favor of an increase, but the rest said they should remain at 5.25%.
Robert Wood, chief economist at Pantheon Macroeconomics in the United Kingdom, said he expects the same vote this time.
The Bank of England said in February that it expects inflation to fall back to its 2 percent target between April and June this year, about 18 months sooner than it previously forecast.
Lowest inflation since 2021 brings hopes of summer interest rate cut
The Bank of England's decision on what it should do about interest rates comes after better-than-expected inflation figures.
Figures released by the Office for National Statistics (ONS) on Wednesday morning showed inflation was 3.4 per cent in February, slightly below the 3.5 per cent forecast by economists.
This is the lowest level of inflation since September 2021. The latest figures are gradually approaching the Bank of England's 2 percent inflation target.
Joe MiddletonMarch 20, 2024 18:01
Welcome
Hello and welcome to the Independent's live coverage of the Bank of England's latest decision on what they should do about interest rates, which currently sit at 5.25 per cent.
Speculation is rife in financial markets that authorities will remain stable and opt to keep interest rates at the same level.
Read our preview of the decision here:
Joe MiddletonMarch 20, 2024 17:59
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