Bank of England Governor Andrew Bailey suggested UK interest rates may not have to rise any further, saying a “marked” drop in inflation is likely this year and that monetary policy is probably “near the top of the cycle.” “Many of the indicators are now moving as we would expect them to move,” Bailey said at the hearing in Parliament on Wednesday. “Indicators are signaling the fall in inflation will continue.” Later in the hearing, he said: “We are much nearer the top of the cycle on interest rates.” The pound fell to a three month low. It dropped as much as 0.7% to trade below $1.25 for the first time since June ... (full story)