Will Bank of England governor play Santa or Scrooge?

Bank of England Governor Andrew Bailey anticipates a drop in inflation to around 3%, potentially influencing rate decisions. The decision to maintain rates at 4% narrowly passed, supported by views that inflation has peaked but with a vigilance on the labor market. Budget measures from last year have impacted price pressures and may influence future rate and policy decisions, particularly in light of potential tax changes and economic growth forecasts for 2026.