Don't ask for a big pay rise, warns Bank of England boss

Workers must not ask for big pay rises to try and stop prices rising out of control, the Bank of England governor has told the BBC.

Prices are expected to climb faster than pay, putting the biggest squeeze on household finances in decades.

Andrew Bailey said the Bank raised rates to 0.5% from 0.25% to prevent rising prices becoming "ingrained".

Asked if the Bank was also implicitly asking workers not to demand big pay rises, he said: "Broadly, yes".

Inflation is on course to rise above 7% this year, leaving households facing the biggest income squeeze in decades.