UK interest rates could top 2% in next year, says Bank of England’s Saunders

Monetary policy committee member says Bank must act to prevent high inflation becoming embedded

Interest rates could rise above 2% in the coming year as the Bank of England acts to prevent high inflation becoming embedded in the economy, one of its policy setters has said.

Michael Saunders, who leaves Threadneedle Street's monetary policy committee (MPC) next month, said he supported tighter policy because the risks of doing too little, too late" outweighed the risks of doing too much, too soon".