Inflation ‘may mean UK interest rates rise next year’; China’s exports jump; bitcoin slides – as it happened

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• Latest: Bitcoin tumbles in crypto selloff
• UK rates could rise if recovery continues and inflation looks persistent
• Cleaning company McBride hit by raw material cost surge
• Takeovers of UK companies by foreign buyers jumped in Q2
• Pound dips as employers warn national insurance hike will cost jobs
• China's exports beat forecasts in August, up 25.6%
• German investor confidence hit by supply chain shortages

A Bank of England policymaker has suggested that UK interest rates could rise in the next year, if the recovery continues and rising prices lead to more persistent' inflationary pressures.

Michael Saunders, a member of the Bank's Monetary Policy Committee which sets rates, told an online session this morning that the economic outlook would determine when interest rates will rise from their current record low of 0.1%.

If the economy continues to recover, and inflation shows signs of being more persistent, then it might be right to think of interest rates going up in the next year or so.

My own view at the August meeting was that with the recovery in the economy, and inflation back to target, we no longer need as much monetary stimulus as previously.

I also worry that continuing with asset purchases when CPI inflation is 4% and the output gap is closed - that's the likely situation later this year - might well cause medium-term inflation expectations to drift higher.

Such an outcome could require a more substantial tightening of monetary policy later and might limit the committee's scope to respond promptly the next time the economy needs more stimulus.