London: Bank of England Governor Andrew Bailey said further interest rate increases are possible in order to return inflation to its 2 per cent target.
Asked by the Sun newspaper whether Thursday’s half-point rise in the benchmark lending rate to 4 per cent was the last, Bailey replied, “It’s just too soon to say.”
“It’s our job to get inflation back down to the 2 per cent target and for it to stay there,” the governor said in a Q&A with the paper published Friday. “We’ll make whatever decisions are needed to ensure that happens.”
Bailey also noted that not all mortgage holders will feel the impact of higher rate for now.
“Variable or tracker rates will rise,” Bailey said. “But for those taking out new fixed rate mortgages, those rates have fallen from the highs we’ve seen recently and I don’t expect our decision today to have much impact.”