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Interest rates unlikely to rise above 5%, says Bank of England official

Interest rates set by the Bank of England are unlikely to rise above 5% as markets previously expected, a senior official has suggested, saying the hit to the economy from such a steep increase would be damaging.

by | 20 Oct, 2022

One of the Bank’s deputy governors, Ben Broadbent, said the rise in rates priced in by markets – from 2.25% now to 5.25% over the coming months – was not a foregone conclusion and would deliver a “pretty material” hit to the economy.

In a speech at Imperial College London, shortly before Liz Truss’s resignation on Thursday afternoon, he said: “Whether official interest rates have to rise by quite as much as currently priced in financial markets remains to be seen.”
Read more at The Guardian

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