Sentance: Interest rates need to go up

City A.M. Reporter
Britain’s tough Budget does not remove the need to start raising interest rates now, Bank of England Monetary Policy Committee member Andrew Sentance said yesterday.

Sentance shocked markets last week when it was revealed that he had voted to raise interest rates by a quarter-point to 0.75 per cent, the first call for an increase by any member in nearly two years.

In the first interview with an MPC member since the new government last week announced the harshest Budget in a generation, Sentance said the fiscal plans were much as expected and did not change his view that it was time to start gradually withdrawing the extraordinary stimulus now in place.