3/24, 8:06 AM (Source: TeleTrader)
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Bailey warns of higher rates if businesses hike prices

Bank of England Governor Andrew Bailey warned Friday that the central bank will raise interest rates again if businesses increase prices.

"If all prices try to beat inflation, we will get higher inflation," Mr Bailey told Radio 4's Today Programme a day after the institution decided in a 7-2 vote to raise key interest rates by a quarter percentage point to 4.25%.

He declared he had not yet seen proof of firms putting up prices more than necessary. However, he stated that "higher inflation really benefits nobody ...It hurts people, and it particularly hurts the least well-off in society."

Baha Breaking News (BBN) / JG