A senior official at the Bank of England has said “tough times” in the UK economy are likely for some time, and interest rates will probably increase again as the Bank tries to bring down inflation.
The Bank’s deputy governor Sir Dave Ramsden was speaking on a visit to Newcastle where he met with a number of local businesses to gauge the health of the regional economy. He said he had seen greater economic “dynamism” in Newcastle city centre than he was currently noticing in central London, but admitted that inflationary pressures were proving difficult for both businesses and individuals.
It was the Bank’s priority to bring inflation back towards its 2% target, but that was likely to take another two years, he said.
