Bank of England’s Andrew Bailey tells workers to stop asking for pay rises after whacking up interest rates

UNDER-FIRE Andrew Bailey told workers to stop asking bosses for unsustainable pay rises — shortly after piling interest rate misery on households.

The Bank of England governor, battling to bring inflation under control, said the country “can’t continue to have the current level of wage increases”.

But he also issued a warning to businesses, saying: “We can’t have companies seeking to rebuild profit margins which means prices continuing to go up at their present rates.”

Mr Bailey whacked up interest rates from 4.5 per cent to five per cent — a bigger percentage move than people were expecting.

Rates are now at their highest since 2008.

However, he denied trying to trigger a recession to bring down spiralling costs.

Some Tory MPs have criticised Mr Bailey for allowing inflation to get out of control.

John Baron said: “Consumers and households are paying the price for the Bank of England being asleep at the wheel.”

Brendan Clarke-Smith added: “I hope for everybody’s sake the latest move works because people are now not only questioning the Bank’s independence, but also their leadership.”

Rishi Sunak said Mr Bailey had his support but refused three times to say the governor was doing a good job.