Half-point interest rate rise ‘on the table’ next month, says Bank of England chief

Andrew Bailey also announces plan to sell off some of Bank's bonds stock to reinforce effect of higher rates in tackling inflation

The governor of the Bank of England has said a half-point increase in interest rates is on the table" for next month as Threadneedle Street considers toughening its anti-inflation stance.

On the eve of official figures that are expected to show the annual increase in the cost of living edging closer to 10%, Andrew Bailey told an audience in the City that the Bank's monetary policy committee (MPC) was considering ditching its policy of increasing rates in quarter-point steps.