Bank of England (BoE) Governor Andrew Bailey explains the decision to lower the policy rate by 25 basis points to 5% in August and responds to questions from the press.

Key takeaways

"Services price inflation may rise slightly in August before easing in the rest of the year."

"Services inflation excluding volatile components, such as airfares and hotels, may be a better guide."

"We need to watch services prices very carefully."

"We should not adjust our course with every data surprise that comes in."

"We still face a question on whether persistent component of inflation is on course to decline to level consistent with 2% inflation."