Bank of England Governor Andrew Bailey stated that it is too early to consider rate cuts and that borrowing costs may need to increase if inflation persists. The BoE has kept rates on hold for the second consecutive meeting, after fighting high inflation rates. Bailey highlighted the conflict in the Gaza Strip as a potential risk for inflation. Investors are predicting a rate cut in June next year, but Bailey has been trying to combat this speculation. He also mentioned that higher food and energy prices may still be affecting wage demands.