UK not on course for return to 1970s inflation, says Bank official

Jan Vlieghe says interest rates may still need to go below zero if economy falters in coming months

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Britain is not on course for a return to the inflation rates seen in the 1970s and interest rates could still need to go below zero if the economy falters in the coming months, a senior Bank of England policymaker has said.

Jan Vlieghe, one of the nine members of Threadneedle Street's monetary policy committee (MPC), said the UK was not yet out of the woods" despite the vaccine-induced bounce in activity, and there was a risk of higher unemployment as the furlough scheme was withdrawn.