On Thursday, the Bank of England issued a statement downplaying recent strides in the battle against inflation, cautioning against complacency. The Monetary Policy Committee (MPC) refrained from definitively asserting that both wage growth and services inflation were unequivocally trending downward.

The inflation data for October, disclosed last month, showcased significant progress, with both core and headline inflation measures experiencing noteworthy declines. Despite this, the Bank of England remains particularly focused on services inflation, an area where underlying price pressures have yet to exhibit conclusive signs of easing.

The committee emphasized the necessity for interest rates to be sufficiently restrictive for an extended period to attain the 2% price target. Additionally, a notable portion, one-third, of the nine voting members continue to advocate for rate hikes.