Bank of England: Britons should not fear rise in interest rates

Rate-setter Kristin Forbes says rise in borrowing costs is inevitable if signs of asset bubbles emerge or household debt rises sharply

The Bank of England is prepared to raise interest rates "in the near future" if inflation picks up, one of its senior policymakers has warned.

Kristin Forbes, a member of the Bank's rate-setting monetary policy committee (MPC), said a rise in borrowing costs would also be necessary should signs of asset bubbles emerge or household debt reaches unhealthy levels.