A modest rise in rates would help ensure a sustainable return of inflation to target over time.”Saunders is one of eight members of the monetary policy committee, having joined last year from the investment bank Citigroup. Saunders said: “There are considerable advantages to acting early enough to allow a gradual rise in interest rates. “A sizeable net balance of consumers, especially those with a mortgage, already expect interest rates to rise in the year ahead and hence have presumably incorporated this in spending decisions. So I do not expect a modest rise in rates will have a disproportionate effect on spending. It would be preferable to have the space to move gradually, observing the effects as we go.

Source: The Guardian August 31, 2017 07:56 UTC