The Governor of the Bank of England has said he is seeing “very encouraging signs” for the global economy. Andrew Bailey told the IMF (International Monetary Fund) that he has witnessed “strong evidence” that the process to reduce inflation “is working its way through” as UK interest rates remain at a 15-year-high of 5.25%. It came hours after the IMF unveiled new forecasts predicting that the UK will eke out slower growth this year than previously thought and remain the second-worst performer in the G7 group of advanced economies. The UN financial agency also cautioned that the escalation of conflict in the Middle East risks pushing up food and energy prices across the world on Tuesday. In an interview with the organisation, Mr Bailey highlighted signs of resilience across the economy. “I agree with the IMF forecasts and that we are seeing very encouraging signs,” he said. “We are seeing activity and resilience in the world economy, but we are seeing disinflation. “In the UK we are disinflating at what I would say is full employment. But I see strong evidence now that the process is working its way through. “Our judgment with interest rates is how much do we...