A modest rise in interest rates in needed to counter rising inflation, Michael Saunders, a member of the Bank of England’s monetary policy committee, said.
Saunders was one of two members to vote for higher rates at the most recent policy meeting. Although inflation has slowed to 2.6% from 2.9%, he expects it to hit 3% in the near future.
Our foot no longer needs to be so firmly on the accelerator, Saunders said. A modest rise in rates would ensure a sustainable return of inflation to target over time.
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