MPC's Sentance calls for immediate interest rate rise

Inflationary pressures are greater than the MPC painted in its latest report and higher interest rates are urgently needed, says the MPC's Andrew Sentance.

Sentance, an external member of the MPC, says too much emphasis has been placed on ‘the output gap' dampening inflation and insufficient attention given towards countering the global forces shaping UK inflation. He once again called for interest rates to rise, after first voting for a hike last June, as he says inflation is persistently above target. This is despite the widespread expectation it would be pushed down by the financial crisis and the global recession. Sentance warns there is a danger business could view higher inflation levels as being the norm. "Businesses appear to ...