UK interest rate rise in 2022 becoming more likely, says Bank chief

Andrew Bailey says inflationary pressures strengthen the case but we are monitoring situation closely'

The inflationary pressures building in the UK has made a rise in interest rates next year more likely, the central bank chief has warned.

Against a backdrop of rising fuel prices and the prospect of higher transport costs pushing up the price of food in the run-up to Christmas, the Bank of England's governor said there were signs that inflation could be sustained and the central bank's monetary policy committee (MPC) may need to increase borrowing costs in 2022.