The Bank of England governor has defended delays in hiking the interest rate.
The Bank yesterday increased interest rates to 1.75 per cent - the highest in 27 years - while warning that Britain will plunge into a year-long recession this autumn.
Mr Bailey said earlier interest rate rises could have damaged the UK's economic recovery following the pandemic.
It came after claims from politicians, including Attorney General Suella Braverman, that the Bank was asleep at the wheel and allowed inflation to get out of control.
Mr Bailey told BBC Radio 4's Today programme said he does not believe the Bank acted too slowly and that earlier action could have brought forward a recession.
“We don't make policy with the benefit of hindsight,” he added.
“I'd challenge anyone sitting here a year, two years ago, to say there will be war on Ukraine and it will have this effect on inflation.”
