Watch live: Top Bank of England economists face questions on interest rate increases

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watch live as bank of englandTop economists face questions on interest rates.

Governor Andrew Bailey facing ParliamentThe Treasury Committee with the central bank’s Chief Economist Hugh Pill and Catherine Mann, members of its Monetary Policy Committee.

Economists are questioning the Bank’s decision to raise interest rates for the 12th consecutive time in May, to a 15-year high of 4.5 per cent.

The committee’s questions come after Mr Pill said British households and businesses “need to accept” they are worse off and stop asking for pay rises and prices to be raised.

“So somehow in the UK, someone needs to accept that they are worse off and stop trying to maintain their real spending power by bidding up prices, whether through higher wages or energy costs for customers. passing,” he told the Columbia Law School podcast.

In a statement shared at the time of the latest increase, the Bank of England said it was raising rates because inflation was too high – 10 percent instead of its target of 2 percent – ​​and that it was the best way to try to reduce inflation. Was. ,

The rate of inflation has increased partly due to increase in food prices.

In addition, many landlords now face the prospect of higher monthly mortgage payments – with the Bank of England estimating that four million households will be affected.

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