UK interest rates may not rise much further: Bank of England governor

11 Sep '23

1 min read

Andrew Bailey. Pic: Bank of England

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UK interest rates may not rise much further amid expectations that inflation is set to fall 'markedly' by 2023 end, Bank of England governor Andrew Bailey recently told parliament members.
He also reiterated his prediction that inflation is likely to be significantly down this winter.
Inflation fell to 6.8 per cent in the year to July, down from June's 7.9 per cent.

Interest rates in the United Kingdom may not rise much further amid expectations that inflation is set to fall ‘markedly’ by 2023 end, Bank of England governor Andrew Bailey recently told parliament members.

In his interaction with the House of Commons treasury committee last week, he also reiterated his prediction that inflation is likely to be significantly down this winter, with a word of caution that it may temporarily ‘tick up’ following the increase in petrol prices in August and amid concerns over the rising cost of oil.

"And I'm not therefore saying we're at the top of the cycle, because we've got a meeting to come, but I think we are much nearer to it, on interest rates, on the basis of current evidence," he told MPs.

A poll found the bank is expected to raise interest rates for a 15th consecutive time to 5.5 per cent later this month, and rates may peak at 5.75 per cent, UK media outlets reported.

Though inflation fell to 6.8 per cent in the year to July—down from 7.9 per cent in June—it is still quite higher than the government target of 2 per cent.

ALCHEMPro News Desk (DS)

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