Bank of England Governor Andrew Bailey said the Monetary Policy Board could adjust interest rates as needed. 

In the statement on the website of the Bank of England (BoE), it was noted that the Bank was following the developments in the financial markets very closely. 

Reminding that the British government made a series of significant announcements in the past weeks, the statement said, “The Government’s Energy Price Guarantee (holding household energy bills fixed for two years) will reduce the short-term peak in inflation.” 

In the statement, which stated that the British government’s commitment to sustainable economic growth was welcomed, the following evaluations were included: 

“The role of monetary policy is to ensure that demand does not overtake supply, leading to further inflation in the medium-term. As the Monetary Policy Committee has made clear before, the Committee will make a full assessment at its next scheduled meeting of the impact of the government’s statements on demand and inflation and the decline in the pound sterling.  

This morning, the British pound hit an all-time low of 1.0350 in Asian markets. 

British Finance Minister Kwasi Kwarteng said in a statement on Friday that the country is preparing to implement tax cuts that will amount to a total of 45 billion pounds. 

Analysts predict that the BoE will continue to increase interest rates in the coming period to control inflation. 

Last week, the Bank of England raised the policy rate by 50 basis points to 2.25%. 

Inflation in the country is currently at 9.9 percent, the highest level in the last 40 years.