Andrew Bailey said the interest rate increase to 3% had been prompted by issues such as the pandemic and the Ukraine war
(Picture: AP)Bank of England Governor Andrew Bailey warned on Thursday that it was a “tough road ahead” for the UK after his organisation made its biggest interest rate increase in three decades. This boosted its key rate by three-quarters of a percentage point to three per cent.
Bailey explained that the Bank was “increasing the bank rate because inflation is too high.”
“It’s the Bank’s job to bring it down,” he said. “For a long time, inflation has been low and stable, most people did not have to worry about inflation. But that has changed. It has changed with supply chain problems after the pandemic, the Russian invasion of Ukraine and the shrinkage of the UK labour force.
“Consumer price inflation now stands at over 10 per cent. I know for many people it will feel worse because the prices of essentials like energy and groceries have risen by much more. People should not have to worry about inflation as they go about their daily business. That’s why we’ve been raising interest rates and did so again today.”
But who is Andrew Bailey? Here’s all you need to know.
Who is Andrew Bailey?
He is the Governor of the Bank of England, a role he began on March 2020.
The 63-year-old, who was born in Leicester, had previously served as Chief Executive Officer of the Financial Conduct Authority (FCA) from 2016.
He went to Queens’ College, Cambridge, where he gained a bachelor’s degree and PhD in history in 1984.
After university, Bailey became a research officer at the London School of Economics, before joining the Bank of England in 1985.
Following the latest mini-budget, Bailey said that the Bank “will not hesitate” to raise interest rates if needed to meet its two per cent inflation target. He said the Bank was watching financial markets “very closely” following sharp moves in asset prices.
His term as Governor of the Bank of England will end on March 15, 2028.
