Bank of England governor dampens hopes of interest rate cut

Andrew Bailey says inflation staying at 4% in January was encouraging but more evidence of cooling in wage rises is needed

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The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.

Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was encouraging" that inflation had remained unchanged at 4% in January but the previous month's figure for the cost of living had been higher than predicted.