Bank of England deputy governor suggests further interest rate hikes are likely
The deputy governor of the Bank of England has signalled it is ready to pull the trigger on more interest rate rises to rein in Brexit-fuelled inflation – a day after the first hike in a decade.
Ben Broadbent told BBC’s Today programme that he anticipates a “couple” of further hikes as part of measures to get inflation, which is currently at 3%, back on track.
His comments came after the Bank increased interest rates from 0.25% to 0.5% on Thursday, marking the first increase since July 2007.
The quarter-point rise reverses the emergency cut seen in the aftermath of the Brexit vote shock in 2016 as the Bank sought to head off turmoil in the economy.
The central bank also signalled more “gradual” increases are on the way to cool surging inflation.
However, the hike did nothing to help the dilapidated pound, which slumped more than 1% against both the dollar and the euro.