We have raised interest rates over the past two years to help slow down price rises (inflation). It’s working. Inflation in the UK has fallen from a peak of 11% in 2022 to 4% in December 2023. But inflation is still above our 2% target. High inflation affects everyone, but it particularly hurts those who can least afford it. We need to make sure it comes down further. We expect inflation to fall, though with some bumps along the way. It could briefly drop to 2% in the spring, before increasing slightly again. We will keep interest rates high for long enough to get inflation back to the 2% target in a lasting way. Our ... (full story)