Bank of England's Andrew Bailey suggests interest rates could peak at 4.5% trends now
The Bank of England Governor has suggested interest rates could peak around 4.5 per cent as he set out expectations for inflation to 'fall quite rapidly' this year.
Andrew Bailey offered some economic cheer today - although he reiterated Threadneedle Street's belief the UK would soon fall into recession.
At the end of last year, Mr Bailey oversaw another increase in the Bank's base rate from 3 per cent to 3.5 per cent.
This heaped more pain on struggling Britons and represented the ninth successive increase, taking the level to a 14-year high.
There are widespread expectations the Bank will hike its main interest rate once again at the beginning of next month, up to 4%.
But Mr Bailey suggested this might not be far from the peak of rates.
Speaking to the Western Mail's Business Live website on an official visit to South Wales, the Governor pointed to how the Bank had previously challenged market expectations of peak rates that it disagreed with.
Bank of England Governor Andrew Bailey offered some economic cheer today - although he reiterated Threadneedle Street's belief the UK would soon fall into recession
At the end of last year, Mr Bailey oversaw another increase in the Bank's base rate from 3 per cent to 3.5 per cent
Figures released yesterday showed the annual CPI rate of inflation was 10.5 per cent in December, down from 10.7 per cent the previous month
'We don't target a particular peak, but what I will say is this, back in November, and quite unusually for us, we thought the market curve, and therefore the
