More Positive Signals that Bank of England Could Raise Rates to Combat Inflation
Posted on 10/17/2021
Bank of England Governor Andrew Bailey stated during an online panel discussion organized by the Group of 30 consultative group, “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.”
“And that’s why we at the Bank of England have signaled, and this is another such signal, that we will have to act,” he said. “But of course that action comes in our monetary policy meetings.”
Bailey sent a new signal that the central bank may gear up to raise interest rates to control inflation from the excesses of QE measures during the COVID-19 pandemic. The Bank of England forecasted that Britain’s inflation rate will go over 4%, more than double its target.
