Interest rates unlikely to rise above 5%, says Bank of England official

The Bank of England said rates are unlikely to rise above 5%. Photograph: Alberto Pezzali/AP

Interest rates set by the Bank of England are unlikely to rise above 5% as markets previously expected, a senior official has suggested, saying the hit to the economy from such a steep increase would be damaging.

One of the Bank’s deputy governors, Ben Broadbent, said the rise in rates priced in by markets – from 2.25% now to 5.25% over the coming months – was not a foregone conclusion and would deliver a “pretty material” hit to the economy.