The Governor of the Bank of England, David Bailey has said he is “very uneasy” over inflation soaring and has warned that interest rates could rise by the end of the year.
Speaking to MPs at the Treasury Committee Bailey said they made a finely balanced decision not to increase rates this month, but warned if required he is ready to take action by December if necessary.
Bailey told the Committee, “I’m very uneasy about the inflation situation.
“It is not of course where we want it to be, to have inflation above target.”
Inflation stands at 4.5%, which is more than double than the 2% set by the Treasury and the rise has been largely created by soaring energy prices.
There are fears that interest rates could rise to 6% in 2022 as the rate is expected to get that high.
Bailey said, “It was a very close call in my view,” in his decision not to increase rates on 4 November.