Bank of England warns inflation will hit 11pc – but still votes against bigger interest rate rise
2 years, 6 months ago

Bank of England warns inflation will hit 11pc – but still votes against bigger interest rate rise

The Telegraph  

Inflation will climb to 11pc this year, the Bank of England has predicted, prompting the Chancellor to indicate that he will not cut personal taxes until spiralling prices are brought under control. On Thursday the Bank's Monetary Policy Committee, led by Governor Andrew Bailey, increased interest rates by a quarter of one percent to 1.25pc - the fifth rise in a row. “This is why, in responding to urgent cost of living pressures that people are facing, I announced a series of measures which are timely, targeted, and temporary to help households manage the squeeze on real incomes whilst not adding unnecessarily to inflation.” In a television interview on Thursday night, the Levelling Up Secretary Michael Gove also refused to rule out a delay of two years before new tax cuts. Earlier in the day he said: “When you are squeezing inflation out of the system, you will rely on the Bank of England and the Government having the fiscal and the monetary policies which will inevitably mean we cannot do all the things that we would in ideal circumstances like to do in order to support people through a difficult period.” Mr Sunak and Mr Gove’s comments underlined a recent claim from Boris Johnson that taxes cannot be cut until inflation is under control.

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