The Bank of England governor has said he is “very sorry” that UK inflation is rising amid forecasts the cost of living could reach as much as 5%.
Andrew Bailey told the BBC that households were already feeling the impact of rising prices.
“I’m very sorry that’s happening,” he said. “None of us want to see that happen.”
On Thursday, the Bank surprised financial markets by voting to keep the interest rate unchanged, reports BBC.
It signalled that the rate – currently at a historic low of 0.1% – will rise in the “coming months” as inflation is expected to grow.
However, the majority of the Bank’s Monetary Policy Committee (MPC) voted to hold borrowing costs during November’s meeting, in part to see how the jobs market had coped with the end of the furlough scheme.