Bank of England Denies Secret Interest Rate Hike Plan Amid Inflation Fears

The Bank of England has dismissed rumors of a 'secret plan' to unconditionally raise interest rates. Governor Andrew Bailey told MPs at Parliament's Treasury Committee that expectations from financial markets do not necessarily mean an increase will take place.

Bailey emphasized that there are still 'upside' risks to inflation, particularly due to energy prices, which have been volatile since the Middle East conflict began six months ago. He stated that 'quite a bit of volatility in energy prices is feeding through into financial markets'.

Megan Greene, an external member of the Bank's monetary policy committee (MPC), expressed concerns over the uncertainty surrounding energy and commodity costs. She noted that 'we face such incredible uncertainty so... it is appropriate to take a risk management strategy'.