Interest Rates Will Rise Further If Firms Raise Prices, Bank of England Boss Warns

Andrew Bailey, governor of the Bank of England, during the Bank of England Monetary Policy Report Press Conference, at the Bank of England, London, on Feb. 2, 2023. Yui Mok/PA Media

The Bank of England will have to put up interest rates even further if companies raise prices in a bid to beat inflation, the bank’s governor has warned.

The central bank said on Thursday that its Monetary Policy Committee (MPC) voted by a majority of 7–2 to increase the bank rate by 0.25 percentage points to 4.25 percent. It was the 11th time in a row the Bank has hiked interest rates.