LONDON — The Bank of England has signalled that it will continue to take a cautious approach to monetary policy as policymakers assess the latest inflation and economic data before making further decisions on interest rates.

Speaking at an international central banking forum, Governor Andrew Bailey said that expectations of imminent rate cuts should not be taken for granted, emphasising that policymakers will remain guided by incoming economic evidence rather than market speculation.

The comments come as businesses, investors and households continue to watch inflation, energy prices and economic growth for clues about the direction of borrowing costs. Financial markets are closely monitoring the Bank's next policy meeting, with interest rate decisions expected to remain data-dependent amid an uncertain global outlook.

Economists say the Bank's measured approach reflects ongoing concerns about inflation persistence, while recognising recent improvements in energy prices and broader market conditions. Businesses are also weighing the potential impact of future borrowing costs on investment and expansion plans.

Attention will now turn to upcoming inflation, employment and economic growth figures, which are expected to play a key role in shaping the Bank of England's next monetary policy decision.