The Bank of England may need to hike interest rates earlier than previously expected as UK inflation runs hot, according to two members of the central bank’s rate-setting committee. Speaking to the Yorkshire Post, BoE governor Andrew Bailey said that he is concerned about the current level of inflation.
‘Unfortunately, if you look at our last forecast, it (inflation) is going to go higher I am afraid. As Bank of England governor I would prefer it not to be there’. Acknowledging that the country is going through ‘very unusual times’ governor Bailey added that they have a challenging job on their hands and that ‘ we have got to in a sense prevent the thing becoming permanently embed because that would obviously be very damaging’.
