A Bank of England policymaker warned on Monday that interest rates could top 2% next year to tackle soaring inflation. Michael Saunders, an outgoing member of the Bank’s rate-setting Monetary Policy Committee, said it was better to take aggressive action now than do too little, too late.
At present its base rate, which influences borrowing costs across the economy, stands at 1.25% after a series of increases, reports the Mirror. At the MPC’s meeting in June, Mr Saunders voted for an increase to 1.5%.
He warned that rises, which can force up thinks like mortgage repayment rates, still have some way to go to bring inflation under control. Figures due out from the Office for National Statistics are expected to show inflation reached 9.2% in June, a new 40-year high.
