Bank of England Governor Andrew Bailey said that the Bank will not hesitate to raise rates to meet the inflation target, explaining that inflationary pressures will require a stronger response than we thought last August.
The Governor of the Bank of England hinted that the Bank may implement a sharp increase in interest rates during next month's meeting, after the turmoil in the markets, CNBC Arabia reported.
On Saturday, the Governor of the Bank of England used the phrase “hard decisions” 9 times, stressing the need for those decisions in the coming weeks and months.
The BoE Governor added: We will not hesitate to raise rates to meet the inflation target, and as things stand today, my best guess is that inflationary pressures will require a stronger response than we thought in August.
Bank of England Governor Andrew Bailey has warned that rising energy prices threaten to hit households worse than the oil price shock of the 1970s.
Household spending on energy as a share of income could be a full two percentage points higher this winter than in 2019, an even bigger increase than we saw during the energy crisis of the 1970s, he added.
Rising gas prices amid supply shortages due to the Russia-Ukrainian war have caused havoc across Europe and the UK, with the UK government spending an estimated £60bn over the next six months to protect consumers.
Bank of England Governor Andrew Bailey continued: “The British economy has suffered for the past three years with very significant disruptions.
