The Bank of England Governor has warned that the threat of inflation is being "underestimated".

Andrew Bailey has said financial markets are getting carried away with the recent drop in price rises.

"I really think the market is putting too much weight on the current data releases and the fact that we’ve seen inflation come down quite rapidly," he said.

"I think it’s sensible based on what we’ve seen to date to keep [interest] rates where they are."

Data published last week showed a sharp fall from 6.7% to 4.6% in October, meeting Rishi Sunak's goal of halving inflation by the end of the year.

The rate remains more than double the Bank of England's 2% target.

FTSE 100

The UK's flagship share index, the FTSE100, was up seven-points at 7,489 shortly after opening this morning.

Meanwhile, Brent crude futures were up 0.15% at $82.57 a barrel this morning.

Companies reporting today

  • Britvic - Full year results
  • Coats Group - Trading statement
  • Grainger - Full year results
  • HICL Infrastructure - Half year results
  • Johnson Matthey - Half year results
  • Kingfisher - Q3 trading statement
  • NextEnergy Solar Fund - Half year results
  • Retork - Q3 trading statement
  • Sage Group - Full year results
  • Severn Trent - Half year results

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