The Bank of England could be a “bit more aggressive” on cutting interest rates, according to its governor.
Andrew Bailey said the speed at which borrowing costs are reduced will depend on the rate of inflation.
The Bank cut interest rates from 5.25% to 5% in August, which was the first drop in more than four years.
In an interview with the Guardian, Mr Bailey also said that the Bank was watching developments in the Middle East “extremely closely”, in particular any movement in oil prices which could fuel inflation.