One of the nine members of the Bank of England\u2019s Monetary Policy Committee (MPC) \u2013 Professor David Miles, who will soon be leaving his role \u2013 has publically stated that interest rates will go up \u201cpretty soon\u201d.<\/p>\n
In a BBC Newsnight appearance, he made it clear that the bank\u2019s rate will be going up from the record low of 0.5 per cent in the near future, adding that: \u201cI don’t think it\u2019s anything to worry about, it\u2019s a sign of health.\u201d<\/p>\n
Mr Miles has been a member of the MPC for over six years, and his recent statement comes after his last vote at the committee\u2019s August meeting was to keep rates at the same level.<\/p>\n
At the beginning of this month only one member of the MPC voted for a rate rise.<\/p>\n
However, Mr Miles\u2019s statement, when combined with warnings from Professor Kristin Forbes \u2013 another committee member \u2013 that delaying an interest rate rise will undermine the UK\u2019s recovery, reveals that attitudes are changing.<\/p>\n
The news also means that rates could be going up sooner than initially predicted by economists.<\/p>\n
Professor Miles said: \u201cWithin the UK economy consumer confidence is strong, corporate confidence is pretty strong and the financial system is operating near normal now.\u201d<\/p>\n
He also made it clear that the new \u2018normal\u2019 level for interest rates is likely to be between 2.5 per cent and three per cent, which would still make it much lower than rates recorded before the financial crash when they were roughly double those figures.<\/p>\n","protected":false},"excerpt":{"rendered":"
One of the nine members of the Bank of England\u2019s Monetary Policy Committee (MPC) \u2013 Professor David Miles, who will soon be leaving his role \u2013 has publically stated that interest rates will go up \u201cpretty soon\u201d.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/929"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=929"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/929\/revisions"}],"predecessor-version":[{"id":930,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/929\/revisions\/930"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}