Bank of England Governor Andrew Bailey refuses to rule out future interest rate rises as he announces latest hike to 5.25%

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00:00 So today we've increased bank rate by 0.25 percentage points to 5.25%.

00:07 Low and stable inflation is the foundation of a healthy economy.

00:11 High inflation hurts the least well off the most.

00:16 We expect inflation to take a further step down in the July data,

00:20 which will be published in two weeks time.

00:22 We think that will come down to around 7% at that point.

00:25 Followed by another larger step down in October's data,

00:28 which will be published in November,

00:31 to around about 5% on that basis.

00:34 The evidence has gone one way then gone a bit the other way.

00:38 So I don't think it is time to declare it's all over

00:42 and we're sticking where we are for the moment

00:44 because I think that really does sit at odds

00:48 with the fact that we've had some very big pieces of news

00:52 and they're not going in the same direction.

00:55 So I think we have to remain evidence driven.

00:58 We've continued to use language which we've used before,

01:01 which is to say, if we get more evidence of more persistent inflation,

01:06 then we will have to react to that.

01:09 But I'd finish this point by just emphasising the fact

01:12 that also there is no presumed path of interest rates from here.

01:17 And as I said in the opening remarks, and I'll emphasise again,

01:21 there is more than one path from here that delivers us back to the target.

01:24 - Hello.

01:25 Thank you.

01:26 [BLANK_AUDIO]

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