LONDON: Bank of England policymaker Kristin Forbes said British inflation could stray above the central bank’s 2 percent target by the end of 2016, which could mean interest rates rise sooner than currently expected.
In a speech published on Monday, Forbes outlined key risks which she saw around the Monetary Policy Committee’s central forecast, some of which could cause inflation to rebound strongly from its current declining trend.
“These scenarios, if they occur, would imply an earlier increase in interest rates than currently expected, especially in order to ensure that any subsequent interest rate increases are slow and gradual,” she said in a speech delivered at a private event last Thursday.
