Bank of England governor Andrew Bailey has indicated that an interest rate rise could be on the cards in six weeks’ time unless HMRC pay data shows a cooling off.
Quizzed by the Treasury select committee, Bailey admitted he was uneasy about rising inflation – a key sign that rates will probably go up when its monetary policy committee next meets.
The Bank of England held interest rates steady at 0.1% last week, defying many investors’ expectations that it would become the first major central bank to hike rates following the pandemic. Low interest rates have been one of the key reasons why the housing market has remained robust during the last 18 months.
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