Giving evidence to MPs, the Bank's chief economist Huw Pill (right) warned interest rates might not fall as fast as hopes because there is still 'more work to do' to tackle price pressures. Meanwhile, Governor Andrew Bailey (left) told the Treasury Select Committee there is a 'major shift going on in the US' which could mean less money in people's pockets. Mr Bailey said that many of the upward forces on inflation were either international or temporary. He mentioned water bills, bus fares and VAT on private schools - but said it was unclear whether they would have 'second round effects' of driving up wages as the jobs market was showing weakness.
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