Mr Bailey has previously warned that the “last mile” on bringing price rises down was likely to be the hardest. Policymakers do not believe inflation will return to the Bank’s 2pc target until 2025.
Mr Bailey said: “We start with a realist view but we are very, very, committed on behalf of the people of this country to get on with tackling the job.”
The Governor repeated previous comments that it was too soon to even talk about cutting interest rates from their current level of 5.25pc because inflation remained stubbornly high.
“We are not in a place now where we can discuss cutting interest rates – that is not happening. We need to see how the final part of the journey down to 2pc inflation plays out; we have not seen enough of that journey yet to be confident,” he said.
“What I would say to business is the best thing we can do for them is get inflation back down.
“That makes them more sustainable and creates a more predictable and secure environment in which to plan ahead. Volatile inflation is not good for that.”
Mr Bailey and his colleagues have been forced to push back against bets that Threadneedle Street will begin cutting rates next summer.
Bank of America said on Tuesday that the message was “finally resonating” with traders who have pared back their assumptions about rate cuts compared with a couple of weeks ago. Speculation about faster rate cuts was sparked by the Bank’s chief economist, who said assumptions about rate cuts next August were not “totally unreasonable”.
Huw Pill has since stressed that interest rates are likely to stay higher for longer.
