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- Bank of England Governor Andrew Bailey won't be rushed into interest rate decision
Bank of England Governor Andrew Bailey won't be rushed into interest rate decision
Business Live reports that Bank of England Governor Andrew Bailey says he won’t be rushed into making decisions on raising interest rates despite this week’s news of rising inflation.
Yesterday saw news that the UK’s inflation rate last month soared to its highest for almost three years.
The Office for National Statistics (ONS) said the Consumer Prices Index rose to 2.5% in June from 2.1% the previous month - rising further away from the Bank of England’s 2% target. The ONS said price rises were widespread, including increases in the cost of food, and in the second-hand market where there was rising demand.
Mr Bailey denied the bank was being “casual” about inflation, saying the Bank was watching the economy closely as it starts a tentative post-Covid recovery before making any decisions on interest rates.
Asked about inflation rates and when the bank would look at raising rates to counter their effects, Mr Bailey said the Monetary Policy Committee (MPC) would take its time to understand the UK’s post-Covid recovery.
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