One of the Bank of England’s nine rate-setters, Kristin Forbes, has suggested that UK interest rates could increase much sooner than expected.
The rapid decline in inflation means that traders are dismissing potential interest rate rises any time soon, however Forbes has come forward to say that this may not necessarily be the case, telling the Wall Street Journal;
“If the risks that I’m focusing on to our last forecasts come through, I think there is a chance that inflation will pick up faster than people had been expecting in the medium term, which would then most likely merit an increase in interest rates sooner than people are currently expecting”
She has made similar predictions previously, stating that inflation could bypass the 2% target by the end of 2016.
For the full story, read “Interest rates could rise sooner than thought, says Bank of England rate-setter”