Bailey warns of biggest interest rate rise in 27 years as he defends Bank’s independence

T he Bank of England is poised to unveil the biggest increase in interest rates for almost 30 years, Governor Andrew Bailey suggested as he hit back against a barrage of attacks by Tory leadership candidates. Mr Bailey said rate-setters have put a 50 basis point increase "on the table" for the next meeting in August, the strongest signal yet that the Bank will step up efforts to bring inflation down from a 40-year high. The Governor last night also launched a staunch defence of the Bank of England, warning that its independence is "now more important than ever" following unprecedented criticism from Prime Minister hopefuls. The Bank's Monetary Policy Committee has already voted for five back-to-back rises after inflation hit a 40-year high of 9.1pc, taking the base rate from 0.1pc to a post-financial crisis high of 1.25pc. But Mr Bailey signalled the Bank could quicken the pace of rate rises from 25 basis points to 50 in what would be the biggest hike since 1995, before it gained independence. A 50 basis point jump would add almost £70 to month to a the costs of a typical £250,000 mortgage on the average five-year rate, according to data from Moneyfacts…. Read full this story

• Centrelink automated debt recovery based on a 27-year-old process: Tudge
• The Biggest Video Game Disappointments Of 2016
• How Interest Rates Will Affect Your Finances in 2015
• Can Russian hackers be stopped? Here's why it might take 20 years
• Bearing Witness to the Rise of ISIS: The Story of Anna Therese Day
• ​Generation YouTube: Today's fastest-rising stars aren't coming out of Hollywood
• The Basics of FIRE (Financial Independence and Early Retirement)
• Public sector workers 'to get above-inflation pay rise'
• WWE wrestles with its past as 90s star Bill Goldberg rises again
• WannaCry ransomware crisis, one year on: Are we ready for the next global cyber attack?

Bailey warns of biggest interest rate rise in 27 years as he defends Bank’s independence have 300 words, post on www.telegraph.co.uk at July 19, 2022. This is cached page on Bach Thien. If you want remove this page, please contact us.