Belfast Telegraph

Friday 11 July 2014

BoE boss shows interest in a gradual rates rise

Speaking in Belfast this week, Andrew Sentance - an external member of the Monetary Policy Committee - has set out three arguments for a gradual rise in interest rates.

He said that the UK economy should be able to withstand a gradual rise in interest rates.

He added that higher interest rates should help halt above-target inflation and keep expectations anchored around the 2% target.

Mr Sentance also argued that the current interest rate is very low.

"The longer we keep interest rates at an exceptionally low level, the greater is the risk that Bank Rate would need to rise sharply in the future."

However the former advocate of quantitive easing was in a less hawkish mood than normal when he spoke to the Belfast Telegraph, saying the UK has recovered enough to ensure no more money-printing is needed.

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