QUOTES-Bank of England's Bailey speaks after interest rates rise to 4%

The Bank of England raised interest rates for the 10th time in a row on Thursday but dropped its pledge to keep increasing them "forcefully" if needed and said inflation had probably peaked. At the same time, however, many people report that they're affected by long term illness, a number of these people say they're unlikely to come back into the labour market.

The Bank of England raised interest rates for the 10th time in a row on Thursday but dropped its pledge to keep increasing them "forcefully" if needed and said inflation had probably peaked. Below are quotes from Governor Andrew Bailey, made during a news conference after the rate decision.

BOE GOVERNOR BAILEY ON INFLATION "Since the November monetary policy report we've seen the first signs that inflation has turned the corner."

"We have done a lot on rates already. The full effect of that is still to come through. But it's too soon to declare victory just yet, inflationary pressures are still there." BAILEY ON ECONOMIC INACTIVITY AMONGST 50 -65 YEAR OLDS

"There's also been a marked increase in inactivity amongst 50 to 65 year olds. Many say they've retired early making a choice about the life they would like to live. At the same time, however, many people report that they're affected by long term illness, a number of these people say they're unlikely to come back into the labour market. "This significant and lingering fall in the labour supply weighs on the UK economy's potential."

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