The Bank of England should have started to raise interest rates already, Monetary Policy Committee (MPC) member Andrew Sentance said yesterday.
At last week's meeting, the MPC maintained rates at 0.5 per cent. But Mr Sentance says the UK needs a series of rises to combat soaring commodity prices and high inflation.
"If we continue to have high headline inflation we are going to see this upward drift in pay increases continue," Mr Sentence said. "My argument is we should already have raised rates a little to respond to these threats in the future."Reuse content