Chancellor warns Bank of England against cutting interest rates too quickly warning inflation could spike...

It comes after the Bank announced it is keeping the base rate of interest on hold at a 16-year-high of 5.25%.The Bank of England maintained interest rates at 5.25% at its May Monetary Policy Committee meeting. However, governor Andrew Bailey has signalled optimism that it may soon be able to cut rates, possibly in June. Mr Hunt has warned against moving too quickly, saying he would “much rather they waited until they’re absolutely sure inflation is on a downward trajectory”.

"We need to see more evidence that inflation will stay low before we can cut interest rates. I'm optimistic that things are moving in the right direction." The MPC indicated it is still looking for more progress on factors including services inflation and wage growth, which have remained persistently high at about 6%, before cutting rates.

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