Bank of England governor defies critics, says surprise rate hike was 'justified' to tame inflation

Bank of England Governor Andrew Bailey said Wednesday that the slope was "justified" successful its determination to rise involvement rates by a astonishment 50 ground points past week.

The determination defied marketplace expectations of a 25 ground constituent hike and reignited statement among critics who accidental that the cardinal slope has failed to enactment rapidly and decisively capable to tackle rising costs.

Bailey said helium accepted the criticism, but insisted that the Monetary Policy Committee remains committed to its task: to instrumentality ostentation to 2%.

"We had to marque truly rather a beardown determination astatine that point. It was justified," Bailey told CNBC's Sara Eisen astatine the European Central Bank's yearly league successful Sintra, Portugal.

"I tin recognize wherefore determination are critics of america and cardinal banks," helium added.

"We person a occupation to do. Our occupation is to instrumentality ostentation to people and we volition bash what is necessary. I recognize the concerns that spell with that, but I'm acrophobic I ever accidental that it is simply a worse result if we don't get ostentation backmost to target."

Bailey was speaking connected a sheet alongside chap cardinal slope chiefs from the U.S. Federal Reserve, European Central Bank and the Bank of Japan.

Fed Chair Jerome Powell said that helium anticipated further involvement complaint hikes ahead, perchance astatine an assertive pace.