Bank of England says its rate rises are starting to tame inflation

Interest rate rises by the Bank of England are beginning to curb inflation, according to its chief economist, who has warned against going too far.

Huw Pill said there were “increasing signs” that the Bank’s actions were “working in pursuit” of its inflation target of 2 per cent, after rates were increased this week to their highest level in more than 15 years. He said the fight against inflation “is working”, but warned of the possibility that “we do too much” to bring it down. “There’s no pre-determined path for interest rates,” he said, adding that “we are responding as the economy and the data evolve”.

The Bank raised its base rate from 5 per cent to 5.25 per cent on Thursday as it battles

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