I think the path of interest rates will be downward, gradually

“I’m very encouraged that the path of inflation is down, so I think the path of interest rates will be down, gradually,” Bank of England (BoE) Governor Andrew Bailey said on Tuesday.

Bailey added: “My best guess will be that interest rates will settle at a ‘neutral rate.’

Market reaction

Sterling came under fresh selling pressure following the comments, currently trading 0.07% lower at 1.3335.