Governor of the Bank of England, Andrew Bailey (Yui Mok/PA)Interest rates may have to be raised higher than initially expected to tackle inflation, the Governor of the Bank of England has suggested. In a speech in Washington, Mr Bailey reiterated that Bank officials will “not hesitate” to raise interest rates if necessary to tackle inflation, while warning that a “stronger” response than previously anticipated could be required. On September 22 the Bank’s Monetary Policy Committee (MPC) raised rates by 0.5 percentage points to 2.25%. Mr Bailey added: “This is the correct sequence, in my view. In brief remarks on fiscal policy that he said were relevant to the central bank, he spoke of the value of the “sustainability of fiscal policy”.

Source: Washington Post October 15, 2022 14:51 UTC