LONDON (Reuters) - The Bank of England raised interest rates by the most in 27 years on Thursday, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%.
Below are quotes from Governor Andrew Bailey and deputy governors Ben Broadbent and Dave Ramsden.
BAILEY ON INFLATION
"If we don't act, inflation will become more embedded, it will get worse and we will have to raise interest rates by more — we have to act if we're going to stop that."
"If we don't bring inflation back to target ... it's going to get worse, and it will get worse precisely, I'm afraid, for those who are least well off in society."
BAILEY ON INFLATION TARGET
"Returning inflation to the 2% target remains our absolute priority. There are no ifs and buts about that."
"All options are on the table for our September meeting and beyond that."
"Overall a faster pace of policy tightening at this meeting will help to bring inflation back to the 2% target sustainably in the medium term."
BAILEY ON FUTURE RATE HIKES
"Looking ahead, that does not mean we're now moving to a predetermined path of raising bank rate by 50 basis points per meeting, or indeed any other number for that matter."
"Policy is not on a preset path. And what we do this time does not tell you what we're going to do next time. All options are on the table for our September meeting, and beyond that."
RAMSDEN ON INFLATION RISKS
"Were inflation to be more persistent than we are now assuming, then that would give you further upside risks. But overall, actually, we think the risks to inflation are balanced after year one."
BAILEY ON BANK INDEPENDENCE
"One of the great strengths of being an independent central Bank is actually, you know, the political pressures have been very well managed throughout the life of the MPC in my view.
"And obviously, we've had many governments throughout that life. That is the best way to manage it in my view. So no, I don't really want to put emphasis on political pressures.
"One of the great virtues of our system is that the Bank of England takes these decisions independently, respecting, of course, the importance of the remit."
BROADBENT ON TRADE-OFFS
"We are facing, and have for some time been facing, these ever increasing trade-off inducing shocks .... they are intrinsically shocks, which in the near term push up inflation but also weaken growth."
(Reporting by Kate Holton, Sachin Ravikumar and William James)