Bank of England deputy governor Ben Broadbent says the UK needs more interest rate rises.
Broadbent said the Bank’s goal of two more rate rises before 2020 was “not a promise”.
But speaking to the BBC Today programme this morning, Broadbent said yesterday’s rate rise was “moderate”.
The Bank’s aim with the rate rises is to “take its foot off the accelerator” and help lower inflation, currently running at around 3 per cent, according to governor Mark Carney.
Broadbent also downplayed the impact on the public.
He said: “I think one should keep the scale of this in context.
“Not all home owners have variable mortgages, and interest payments on debt are “lower than they’ve ever been relative to income.”
The Bank of England yesterday voted to raise the base rate to 0.5 per cent, the first increase in more than ten years.
The base rate was formerly 0.25 per cent, having been cut from 0.5 per cent in August 2016.
The Bank’s monetary policy committee voted seven to two to raise the rate.