"Two percent is our target and we will do what it takes to get there," Bailey said in an interview with Daily Focus, a news service in central England. "We are not in a place now where we can discuss cutting interest rates - that is not happening."

"We need to see how the final part of the journey down to 2% inflation plays out; we have not seen enough of that journey yet to be confident."

(Reporting by Muvija M; Editing William Schomberg)