Former deputy governor of the Bank of England explains why interest rates are going up

A former deputy governor of the Bank of England has offered an explanation as to why UK interest rates are going up, as mortgage providers put average two-year fixed rates up to almost 6% per cent.

Sir Charlie Bean, who was deputy governor for monetary policy at the Bank 2008 until 2014, said that it was a case of “cooling the economy.”

“The fundamental problem here is supply side shock. In order to prevent inflation getting imbedded into the system, you have to run the economy at a lower pace for a while,” Sir Charlie said.

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