Bank of England (BoE) governor Andrew Bailey said on Monday that the central bank is prepared to raise interest rates again in order to bring inflation down, reported Reuters. Policymakers can and must take the actions needed to return inflation to target over a period that avoids unnecessary volatility, he added. 

The UK is facing a very big negative impact on real incomes caused by the rise in prices of imports, Bailey continued. Bailey added that he rejects the argument that the government's response to the Covid-19 pandemic and BoE's monetary policy let demand get out of hand and thus stoked inflation.