Outgoing BoE official says interest rates to rise "pretty soon"

Jessica Morris
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Outgoing MPC member Miles said the UK economy is returning to a more normal position (Source: Getty)

Outgoing Bank of England (BoE) rate-setter David Miles has said that the time for interest rates to rise from the record low is drawing closer.

Speaking during an interview on BBC Newsnight Miles, who has already cast his final vote as member of the monetary policy committee (MPC), said that rates would rise "pretty soon", adding: "I don't think it's anything to worry about -- it's a sign the economy is returning to a more normal position."

"It's taken a long time to get there, and we're not fully there yet."

Earlier this month, Miles was one of the majority of policymakers who voted eight-to-one to hold rates, the first split vote this year.

Read more: Forbes warns against keeping interest rates low for too long

External monetary policy committee (MPC) member Kristin Forbes recently warned keeping interest rates low for too long risks undermining Britain's economic recovery.

“Waiting too long would risk undermining the recovery—especially if interest rates then need to be increased faster than the gradual path which we expect,” Forbes said.

BoE governor Mark Carney has also said "the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year". However he has since stressed that this is a personal view.

Read more: Pound jumps on shock rebound in core inflation

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