The Bank of England (BoE) is now “much closer” to the end of its cycle of raising its key rates, said Wednesday its governor Andrew Bailey before the British Treasury parliamentary committee.
“I think we are now much closer to the top of the cycle” of raising the institution’s key rates, said Andrew Bailey.
“So I’m not saying we’re at the top of the cycle because we still have a meeting coming up,” he immediately tempered. “But I think we are much closer to it based on the current (economic) data. »
In early August, the Bank of England raised its rates by 0.25 percentage point, to a peak since early 2008 at 5.25%, to fight inflation. It was the institution’s 14th consecutive monetary tightening.
Long stuck at more than 10%, inflation has moderated in recent months in the United Kingdom, falling to 6.8% in July. However, it remains the highest of the G7 countries.
“The fall in inflation will continue”, in a “fairly marked way by the end of the year”, assured Mr. Bailey, insisting on the fact that the institution is doing everything possible to regain its target of 2%.
“If we don’t control inflation, the situation gets worse,” he also responded to criticism of the consequences of high interest rates on the poorest households.
The next meeting of the BoE is scheduled for mid-September, after the monetary decision of the European Central Bank (ECB), and that of the American Federal Reserve (Fed).