Bank of England Chief hints interest rate hikes to tame inflation

Bank of England Governor Andrew Bailey signalled on Saturday that they may consider hiking interest rates to fight inflation.

Bailey said that they may require a bigger interest rate to fight inflation pressures because of the government's energy subsidies for households and businesses, and its tax cut plans.

Investors opine that BoE may increase interest rates from the current level of 2.25per cent to 3 per cent, or upto 3.25 per cent, both of which is considered to be bigger moves than usual.

The Governor said they would assess the impact of the government's energy subsidy scheme and Jeremy Hunt's budget statement on October 31.