The Bank of England’s governor has warned that the economic recovery is “levelling off”, but interest rates must rise anyway.
Speaking to the Commons’ Treasury committee, Andrew Bailey said supply chain disruption and staff shortages had caused the recovery to slow down.
He added that much of the inflationary pressure would subside, but said that the bank would probably be forced to raise interest rates from the current level of 0.1% to combat inflationary pressures over the next two to three years.
