View more on these topics

MPC’s Weale says interest rates should rise

Monetary Policy Committee member Martin Weale says interest rates should start rising now to avoid sharp and more damaging rises in the future.

Speaking to BBC Radio 4’s World at One programme yesterday, Weale (pictured) said: “My expectation would be that – although there would be some costs – it would protect us from a squeeze later on, needed to get people’s inflation expectations back towards the 2 per cent target.”

The Consumer Prices Index measure of inflation hit 4 per cent in January, up from 3.7 per cent in December.

Meanwhile the Retail Prices Index went from 4.7 per cent in December to 5.1 per cent.

Weale joined fellow MPC member Andrew Sentence in voting for a 0.25 per cent increase to interest rates at last month’s MPC meeting.

Bank of England governor Mervyn King wrote to Chancellor George Osborne earlier this month under the requirement to explain why CPI inflation continues to overshoot its 2 per cent target.

In his letter King hinted that the base rate may rise in May, with further increases possible by the end of the year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. what’s wrong with a tiny rise now to show some direction?
    without a rise soon wages will take off like never before, there is so much pent-up desire. those still in work will want to catch up somehow.
    i have a horrible feeling the BOE have misread this, there will be no double dip and the recession never really happened. sadly the price for all the QE and bailouts is years of sluggish growth, house price falls and infaltion.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com