A Bank of England policymaker has said the interest rate could reach 2% or higher in the next year in order to tackle inflation.
Michael Saunders, a member of the Bank’s Monetary Policy Committee, said he did not think that such forecasts from financial markets were “implausible or unlikely”.
“Rather than focus on a precise forecast for Bank Rate over the next year, the key point is that the tightening cycle may, in my view, still have some way to go,” he said in a speech at the Resolution Foundation think tank on Monday.
The interest rate is currently at 1.25%.
Mr Saunders has previously supported a bigger rate rise than most of his colleagues.
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