Bank of England Governor Andrew Bailey (pictured) has said the Bank will not hesitate to make strong interest rate decisions if inflationary pressures require it.
Last week the Bank of England had to step with a bond buying operation following ongoing uncertainty in the economy.
That uncertainty came in response to the mini-Budget announced by former Chancellor Kwasi Kwarteng who was unceremoniously sacked yesterday by Prime Minister Liz Truss.
New Chancellor Jeremy Hunt has been conducting interviews today trying to calm markets and reintroduce stability.
Speaking at the G30 37th Annual International Banking Seminar, Washington, D.C today Bailey said: “The UK Government has made a number of fiscal announcements, and has set October 31st as the date for a further fiscal statement.
“The MPC will respond to all this news at its next meeting in just under three weeks from now.
“This is the correct sequence in my view. We will know the full scope of fiscal policy by then. But I will repeat what we have said already.
“We will not hesitate to raise interest rates to meet the inflation target.
“And, as things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August.”
The next interest rate decision is scheduled for early November.
