Bank of England Governor Andrew Bailey has said interest rates are close to their peak, but that they may still have further to rise.
He told MPs “we are much nearer now to the top of the cycle” of rate rises.
The Bank has hiked rates 14 times in a row as it tries to slow the fastest pace of price rises among the world’s big economies.
It is expected to raise borrowing costs again later this month, taking the Bank rate to 5.5%.
The theory is that raising interest rates makes it more expensive to borrow money, meaning people have less to spend, reducing demand and slowing inflation, which is the rate at which prices rise.
But the Bank rate is currently at its highest level for 15 years, and inflation has remained stubbornly high.
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