Interest rates are on course to rise next Spring and could be raised sooner if there are signs that falling unemployment is causing inflationary pressures, according to a Bank of England policymaker.
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| Martin Weale |
Martin Weale, an external member of the Monetary Policy Committee (MPC), said the Bank could raise rates before next May's General Election.
"I think it is very helpful if we try and explain that the most likely path for interest rates is that the first rise will come perhaps in the spring of next year," he told Sky News. "During an election campaign it would obviously be difficult [to raise rates] but the election campaign will last for three weeks."
Mark Carney, the Bank's Governor, has stressed that the MPC is in no rush to raise rates, and that any increases would be gradual. The Bank severed the link between the unemployment rate and an interest rate hike last week, switching to a broad range of measures including wage growth and business investment to assess Britain’s ability to support a rise.
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