Bank of England governor shrugs off smaller-than-expected fall in inflation

Andrew Bailey says inflation is in line with BoE forecasts but view of markets is that data will delay interest rate cuts

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The governor of the Bank of England, Andrew Bailey, has shrugged off a smaller-than-expected drop in inflation last month, saying he expected a sharp fall towards the government's 2% target next month.

Speaking in Washington after news that the government's preferred measure of the cost of living had eased from 3.4% in February to 3.2%, Bailey said the path of inflation was broadly in line with what Threadneedle Street had predicted in its quarterly health check on the economy.