Rate hike may come sooner

THE UK will need to start the process of hiking interest rates sooner rather than later, and the market may be unprepared for even gradual increases, according to a senior Bank of England policymaker.

Martin Weale, who sits on the Bank’s monetary policy committee (MPC) told the Financial Times that “if you want to have baby steps you do have to start sooner”. He added that the Bank would likely tighten “no more than” 0.25 percentage points each quarter, but that could be more than markets expect.