Monday, 18 October, 2021
Governor of the Bank of England signals interest rate rise could come in Novembe
Governor of the Bank of England signals interest rate rise could come in November – The Telegraph
18-Oct-2021 07:02:36
Governor of the Bank of England signals interest rate rise could come in November
And that’s why we at the Bank of England have signalled, and this is another such signal, that we will have to act. But of course, that action comes in our monetary policy meetings.”
By Lucy Burton ANDREW BAILEY has given his clearest hint yet that the Bank of England is about to raise interest rates in an attempt to combat a jump in inflation.
3pc Current rate of inflation, which is expected to climb further over winter as energy prices and the cost of haulage rises
The BoE Governor suggested yesterday that Threadneedle Street is preparing to lift rates from their current all-time low of 0.1pc, with speculation it could act as soon as next month.
under the weight of chronic shortages.
The Bank’s Monetary Policy Committee will next announce a decision about rates on Nov 4. Markets believe a rate increase to 0.25pc is increasingly likely after concerns were raised by several policymakers about inflation in the past few weeks. Such a move would lead to an immediate increase in costs for nearly 2m households with variable mortgages. Roger Bootle: Page 4
Speaking in an online panel, MrBailey said: “Monetary policy cannot solve supply-side problems – but it will have to act and must do so if we see a risk, particularly to medium-term inflation and to medium-term inflation expectations.
It comes as officials race to dampen down inflation, which is currently running at 3pc and is expected to climb further over the winter months as energy prices spike and supply chains buckle
3pc Current rate of inflation, which is expected to climb further over winter as energy prices and the cost of haulage rises
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