Bank of England warns interest rates will rise again if businesses hike prices

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Bank of England governor Andrew Bailey has warned businesses that raising prices to "beat inflation" will force further rises in interest rates.

He urged companies to think twice before putting up prices, a day after the Bank's Monetary Policy Committee hiked interest rates to a 14-year high of 4.25 per cent.

But industry leaders warned that firms could be forced to cut jobs or even go under if they followed his suggestion.