Interest rates unlikely to rise above 5%, says Bank of England official

Ben Broadbent says increase already priced into markets would deliver pretty material' hit to economy

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Interest rates set by the Bank of England are unlikely to rise above 5% as markets previously expected, a senior official has suggested, saying the hit to the economy from such a steep increase would be damaging.

One of the Bank's deputy governors, Ben Broadbent, said the rise in rates priced in by markets - from 2.25% now to 5.25% over the coming months - was not a foregone conclusion and would deliver a pretty material" hit to the economy.