Andrew Bailey says inflationary pressures strengthen the case but ‘we are monitoring situation closely’
The inflationary pressures building in the UK has made a rise in interest rates next year more likely, the central bank chief has warned.
Against a backdrop of rising fuel prices and the prospect of higher transport costs pushing up the price of food in the run-up to Christmas, the Bank of England’s governor said there were signs that inflation could be sustained and the central bank’s monetary policy committee (MPC) may need to increase borrowing costs in 2022.