Investors Digest Bailey’s Hints on Rates Hike

Andrew Bailey has insisted that the Bank of England will raise interest rates if expectations of higher inflation drive up wages.

The BoE’s Governor stressed that policymakers would intervene to avoid the prospect of heightened price growth becoming “generalized” across the British economy.

He was participating in a virtual question and answer session less than a week after Bank policymakers jolted markets by opting to keep its benchmark interest rate on hold.

Expectations of a rise were bolstered last month when Bailey said the Bank would “have to act” if there were inflation risks. Consumer prices are now expected to reach about 5 per cent in April, their highest level in a decade.