The Governor of the Bank of England has warned that interest rates may have to be raised even higher than initially expected to tackle inflation.
Andrew Bailey said Bank officials will “not hesitate” to raise interest rates if necessary, while warning that a “stronger” response than previously anticipated could be required.
Public comments by Mr Bailey have taken on increased significance in recent weeks, after the government’s mini-budget spooked the markets, sent the pound plummeting and forced the independent Bank of England to intervene in a bid to restore financial stability.
It comes as the governor revealed that he spoke to new chancellor Jeremy Hunt on Friday and had an “immediate meeting of minds”.
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