Bank of England’s Saunders: inflation could force interest rate rise next year

Relatively limited' increase could be needed if inflation is persistent, says member of rate-setting committee

The Bank of England could be forced into action to raise interest rates next year if inflation remains persistently higher than expected, one of Threadneedle Street's policymakers has said.

Michael Saunders, one of nine members of the Bank's monetary policy committee, said a rise in borrowing costs could be warranted before the end of 2022 if the UK's economic recovery from lockdown is maintained and the rate of inflation sticks at elevated levels.