The British banking sector is seeing a rise in impairments amid rising inflation and ensuing interest rate hikes, according to Bank of England Deputy Governor Sam Woods. In a bid to tame runaway inflation, the central bank has hiked its main interest rate from 0.1% in December 2021 to a 15-year high of 5.25% presently, and the market expects another hike later this week to 5.5%. The economy has proven surprisingly resilient, but Woods, also CEO of the Prudential Regulation Authority, said regulators are closely monitoring potential stresses in the banking sector. “So far things have worked out a bit better than many ... (full story)