Interest rates could rise again as early as May as inflationary pressures continue to impact the economy, a Bank of England (BoE) policymaker has warned.
Bank of England Monetary Policy Committee (MPC) member Catherine Mann said borrowing costs would probably have to rise further as consumer demand is unlikely to fall soon enough to stop businesses from pushing through price increases.
In February when the MPC voted for a 0.25% increase she voted, with a minority of other members, for a 0.5%.
Last month she voted with almost all other members for a 0.25%, taking the base rate to 0.75%.
Speaking on a BoE Webinar she said: “The domestic inflation ratchet … has been my central concern.
“Monetary policy needs to keep inflation expectations anchored; by doing so now, less tightening will be required later, when demand may still be weak.”
The next decision on rates is due on May 5th.
