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Summary : The governor of the Bank of England has defended its decision to raise interest rates, saying there is a “real risk” of soaring prices becoming “embedded”.

The Bank’s governor, Andrew Bailey, told BBC Radio 4’s Today programme: “The real risk we’re responding to is that inflation becomes embedded and it doesn’t come down in the way that we would otherwise expect.” They’re also saying to us, actually they’re not finding it difficult to raise prices at the moment.

But the Bank has warned it could peak at more than 13% and stay at “very elevated levels” throughout much of next year, before eventually returning to the Bank’s 2% target the following year. Those on standard variable rate mortgages will see a £59 increase.

The governor of the Bank of England has defended its decision to raise interest rates, saying there is a “real risk” of soaring prices becoming “embedded”.The Bank’s governor, Andrew Bailey, told BBC Radio 4’s Today programme: “The real risk we’re responding to is that inflation becomes embedded and it doesn’t come down in the way that we would otherwise expect.””We’ve had a domestic shock, we’ve had a shrinkage in the labour force over the last two years or so,” he said.”The first thing that businesses want to talk to me about is the problems they’re having hiring people… They’re also saying to us, actually they’re not finding it difficult to raise prices at the moment. Now we think that can’t go on.”But the Bank has warned it could peak at more than 13% and stay at “very elevated levels” throughout much of next year, before eventually returning to the Bank’s 2% target the following year.Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch via WhatsApp: +44 7756 165803 and Twitter: @BBC_HaveYourSayThe economy is forecast to shrink in the final three months of this year and keep shrinking until the end of 2023.

The slump is not set to be as deep as 14 years ago but may last just as long.

Now rates have gone up to 1.75%, homeowners on a typical tracker mortgage will have to pay about £52 more a month. Those on standard variable rate mortgages will see a £59 increase.