Andrew Bailey has, rightly or wrongly, become the face of unacceptable high inflation.

In his annual Mansion Speech at a dinner hosted by the Lord Mayor of London, Bailey spoke of the resilience of the UK economy and the fact that, in his opinion, it can stand further hikes in interest rates.

The Bank surprised the Market last month by raising interest rates by fifty basis points as inflation remains stubbornly high.

Bailey believes that since food inflation has peaked that the overall rate of inflation will fall quickly, and Rishi Sunak’s pledge to halve the rate of inflation by the end of the year remains attainable.

Since December 2021, interest rates have been hiked from 0.1% to their current level of 5%, yet they still don’t yet appear to have reached a level at which they are restricting demand which remains strong.

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