Bank of England boss tells BBC he won't rush interest rate rises

Bank boss tells BBC he won't rush interest rate rises12 minutes agoShareSaveAdd as preferred on GoogleFaisal Islam,Economics editorandLucy Hooker,Business reporterBloombergBank of England governor Andrew Bailey says the UK's central bank will not rush to make a decision on interest rate rises, despite the world facing what he described as a "very big energy shock".Speaking to the BBC at the meeting of the International Monetary Fund (IMF) in Washington, he said higher oil and gas prices would certainly feed through to prices.But other factors made a decision on rates "very, very difficult", he said ahead of the next decision on 30 April.The IMF warned on Wednesday that central banks should not rush to hike borrowing costs in the wake of the Middle East conflict.Bailey said the Bank of England was taking into account the IMF's "serious advice".Before the US-Israeli attacks on Iran six weeks ago, the Bank of England was widely expected to lower rates over the course of this year. However the threat of higher prices, due to rising energy costs, has prompted speculation rates will be held steady or even rise this year.When inflation runs higher central banks usually raise interest rates to choke off demand. But when economic activity slows they will lower interest rates to encourage borrowing and spending.The impact of higher energy prices could be both to boost prices and knock growth, making the Bank's job harder."There's really difficult judgments to be made," said Bailey. "We're not going to rush to judgments on those things, because there are a lot of uncertainties around this, not just how it's going to play out, but also how it's going to pass through into the UK economy."Before the conflict there had been signs that the labour market was softening and that businesses were finding it harder to pass on price rises to customers, Bailey said, factors suggesting that inflation i...