The Bank of England (BoE) governor Andrew Bailey has warned “we’re not out of the woods yet” when it comes to inflation, as inflation held steady at 3.8% and UK interest rates were held at 4%. Figures from the Office for National Statistics show that inflation remained the same level as July, as expected by economists. Future rate cuts will need to be approached cautiously, with inflation rising since April amidst economic uncertainty, making the time and scale of any decisions harder to predict. Inflation remains close to double the BoE’s 2% target, keeping borrowing costs and savings returns under pressure. While inflation is forecast to ease back to the target, the Bank has signalled it is not ready to commit to further reductions yet. Since August last year, the BoE has lowered rates five times as inflation fell from its peak. However, rising food prices and renewed upward pressure since April have complicated the outlook. The Bank forecasts inflation to peak at 4%, with the potential to delay further interest rate cuts. For more information please refer to this article