The retiring Monetary Policy Committee member Dr Andrew Sentance repeated his calls for the Bank of England to tighten monetary policy yesterday.
Dr Sentance warned: "If we do not start to raise UK interest rates gradually soon, we risk having to do so more aggressively in the future – which could create a big shock to business and consumer confidence further down the track. The lack of a substantive policy response to persistent above-target inflation also enhances the risk of a loss of credibility."
Pointing to mounting evidence of imported inflation, he added: "The UK economy is sufficiently open to international influences that our inflation outlook can never be purely a product of domestic factors."Reuse content