LONDON (Reuters) -Bank of England Governor Andrew Bailey said on Monday that the BoE “will not hesitate” to raise interest rates if needed to meet its 2% inflation target, and that it was watching financial markets “very closely” following sharp moves in asset prices. Sterling fell to a record low against the U.S. dollar earlier on Monday in Asian trading, extending losses that had accelerated on Friday after finance minister Kwasi Kwarteng gave his first fiscal statement, promising big tax cuts. “The Bank is monitoring developments in financial markets very closely in light of the significant…