The governor of the Bank of England has warned it will “have to act” to curb rising inflation, sending a new signal that it is gearing up to raise interest rates.
Andrew Bailey said he continued to believe the recent jump in inflation would be temporary, but he predicted a surge in energy prices would push it higher and make its climb last longer, increasing the risk of higher inflation expectations.
“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,” Bailey said on Sunday during an online panel discussion organised by the Group of 30 consultative group. » | Guardian staff and agency | Monday, October 18, 2021
