Bank of England governor expects ‘quite marked’ fall in UK inflation

Pound falls as Andrew Bailey's comments call into question need for further interest rate rise

The Bank of England governor, Andrew Bailey, expects inflation to fall quite markedly" this year, calling into question the need for a further interest rate rise when policymakers meet later this month.

Delivering a positive message to MPs that inflation was on a downward path, Bailey said falling energy prices and a weakening labour market meant the cycle of interest rates rises was nearing its end.