UK interest rates will fall ‘gradually’, predicts Bank of England governor; China launches stimulus blitz – business live

Rolling coverage of the latest economic and financial news

The Bank of England is more likely to cut interest rates if it is confident that inflation is heading sustainably to its 2% target.

Energy prices will be a key factor in that; they pushed up inflation in 2022, but were then a drag on price rises as the cost of oil and gas fell back. This has led to UK petrol and diesel prices dropping at the fastest rate this year.