Thursday, 31 August 2017

Bank policymaker Michael Saunders urges higher rates

A key member of the Bank of England's interest rate-setting Monetary Policy Committee (MPC), Michael Saunders, has said "a modest rise" in interest rates is needed to curb high inflation.

In a speech in Cardiff, he said it would "help ensure a sustainable return of inflation to target over time".

Mr Saunders said the Brexit process "might be bumpy".

However, he added that the Bank "should not maintain an overly loose stance as insurance against this scenario".

"Rather, we should be prepared to respond as needed if it happens."
The UK's key measure of inflation, the Consumer Prices Index (CPI), was 2.6% in July.

The MPC's main task is to achieve a 2% target for CPI, as set by the government.

BBC     News.

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