Bailey Denies Secret Plan to Hike Interest Rates Amid Inflation Risks

The Bank of England's governor, Andrew Bailey, has denied having a 'secret plan' to unconditionally increase interest rates. He stated that there are still 'upside risks' to inflation, particularly with energy prices.

Bailey emphasized that market expectations for higher interest rates do not guarantee their implementation. The UK's current interest rate sits at 3.75%, and economists predict at least one increase in the next year due to expected inflation.

Next week, the Bank of England's monetary policy committee will meet again to decide whether to raise, hold, or lower interest rates. External member Megan Greene expressed concerns over volatile energy prices, stating that she has 'incredible uncertainty' about future costs and believes a risk management strategy is necessary.