Sentance echoes King's 5% inflation warning

The pound's weakness threatens to bolster inflation above 5%, supporting the need for higher interest rates, says MPC hawk Andrew Sentance.

The Bank of England policymaker says there is "quite a bit of evidence" there is some further upward pressure on inflation on the horizon, he told Bloomberg. Mervyn King, governor of the Bank of England, has previously warned inflation could top 5% because of rising inflation expectations and higher commodity prices. Speaking last month after the spike in CPI to 4.4%, King said there was "a significant risk inflation will exceed 5% in the near term." Sentance, who has voted to increase interest rates every month since June, believes the UK is seeing more imported inflation than if ...