INTEREST rates may have to go higher than first thought to tackle inflation, the Governor of the Bank of England says.
In a speech in Washington, Andrew Bailey insisted officials will "not hesitate" to raise rates if needed - while warning it may require a "stronger" response than anticipated. Mr Bailey's public comments&nbsp;have gained extra significance since the Government's mini-budget spooked the markets, sent the pound plummeting and forced the Bank of England to step in to try to restore financial stability.
The political and economic chaos unleashed by then-Chancellor Kwasi Kwarteng's tax-cutting budget eventually led to his sacking on Friday. Mr Bailey&nbsp;said he had spoken to new Chancellor Jeremy Hunt and there was "a very clear and immediate meeting of minds about the importance of fiscal sustainability and... of taking measures to do that".
The Bank raised interest rates by 0.5% to 2.25% on September 22. Mr Bailey said the Bank "will respond to all this news" at its next meeting in three weeks.

Interest rates 'may go higher still'

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{{magzter}} is the World's largest and fastest growing self-service, cross-platform digital newsstand with over 88 million users since its inception in 2011 and thousands of magazines and newspapers across 40+ categories and 60+ languages. Headquartered in New York, Magzter has its local presence in Amsterdam, London, Mexico City, Chennai, Mumbai, New Delhi, Bengaluru, Singapore, and will soon be expanding to other countries. Founded by global entrepreneurs, Girish Ramdas and Vijay Radhakrishnan in June 2011, Magzter enables magazine and newspaper publishers around the world to create and deliver digital editions of their titles to global consumers.