Bank of England Governor Andrew Bailey said recent indicators point to a softening UK labour market and opening economic slack, reinforcing the central bank’s view that interest rates will continue on a gradual downward path. He cautioned, however, that monetary policy must remain restrictive until the risk of inflation staying above the 2% target has "dissipated further," adding that near-term price dynamics and the balance of supply and demand remain uncertain. Reserve Bank of Australia Governor Michele Bullock delivered a similar message after the RBA board voted 6–3 to leave the cash rate unchanged. Bullock said policy is still “a little bit restrictive” and the timing—not the direction—of easing is now the main question. The board will wait for the next quarterly consumer-price report before considering cuts, she added, noting that some components of second-quarter CPI could exceed forecasts and that earlier 50-basis-point reductions have yet to feed fully through the economy. Both central-bank chiefs underscored a data-dependent approach, stressing that any loosening will proceed gradually to ensure inflation returns sustainably to their respective targets—2% in the United Kingdom and 2.5% in Australia—while guarding against renewed price pressures amid ongoing economic uncertainty.