Sentance remains lone supporter of interest rate rise

Dr Andrew Sentance remains the lone member of the Bank of England Monetary Policy Committee to argue for an increase in interest rates.

The minutes for the most recent meeting of the Committee show he wanted to raise rates by 0.25% to 0.75%, while the other eight members chose to maintain the level at 0.5%. He argued the "strength of global growth" and the "rebound in domestic demand" indicated the economy could withstand any fiscal tightening. The minutes record: "In this member's view, a well-communicated policy of gradually increasing Bank Rate would not destabilise business and consumer confidence and would reduce the risk of a sharper jolt to confidence from larger unexpected rises at a later stage." Sentance ...