Bank of England chief warns it ‘will have to act’ to curb inflation
The governor of the Bank of England warned on Sunday that it “will have to act” to curb inflationary pressure, making no attempt to contradict financial market moves that have priced in the first interest rate increase before the end of the year.
Speaking from home to the G30 group of central bankers, Andrew Bailey said inflation in the UK had already risen and would rise further in ways that would warrant action to tame medium-term inflation.
Ramping up the rhetoric ahead of the Budget and the BoE’s next forecast on November 4, he signalled that his concerns on inflation during the current energy crisis had increased.
The governor stuck by his long-held view that the rise in inflation, which jumped to 3.2 per cent in August, would ultimately be “temporary” but noted that large price increases would last well into next year.
“The energy story means [the period of…