Bank of England policymaker urges interest rate rise

Michael Saunders says Brexit uncertainty is hitting consumer confidence, but 'modest' increase is necessary to curb high inflation

Britain needs higher interest rates to prevent inflation from heading back towards 3% and staying there for several years, according to Michael Saunders, one of the two dissenting Bank of England rate-setters to vote for a rise earlier this month.

Saunders said the UK economy was able to withstand the impact of higher credit costs after a steep fall in unemployment that paved the way for an increase in wages and higher prices in shops.

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