Bank of England hints interest rates could rise in coming months

05 Nov 2021

The Bank of England has hinted that it may raise interest rates in the coming months.

Interest rates may have to escalate in response to increasing levels of inflation. Policymakers at the Bank recently voted to hold interest rates at the record low rate of 0.1%.

The Bank's Monetary Policy Committee (MPC) stated that it would wait to see how the jobs market copes with the end of the Coronavirus Job Retention Scheme (CJRS) before making decisions on interest rates.

Commenting on the issue, Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said: 'On balance, the decision to keep interest rates unchanged is the right one. The upcoming rise in inflation will likely prove transitory, and there is as yet only patchy evidence of rising prices becoming embedded in both wage-setting and households' inflation expectations.

'The next few months will be something of a balancing act for the MPC. They will need to navigate monetary policy to both curb any signs of price pressures becoming more entrenched, and support the economic recovery from the pandemic.'

Register for our Monthly Newsletter -

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up today ยป

Tel: 01749 685000

Email:

Chalmers HB
20 Chamberlain Street
Wells
Somerset
BA5 2PF


Contact us | Credits | Accessibility | Disclaimer | Help | Site map |

© 2024 Chalmers HB. All rights reserved.
We use cookies on this website, you can find more information about cookies here.

Chalmers HB Limited, Registered in England, Registered number 4233537, Registered Office: 20 Chamberlain Street Wells Somerset BA5 2PF. Chalmers HB Audit Limited, Registered in England, Registered number 9739736, Registered Office: 20 Chamberlain Street, Wells, Somerset BA5 2PF.