Hike interest rates now

Interest rates must rise to stop inflation spiralling out of control, according to a senior Bank of england official.

Michael Saunders, who was one of two members on the central bank’s nine-strong monetary policy committee to vote for higher rates last month, said the economy could withstand a ‘modest rise’ in borrowing costs.

he said that the economy was in better shape than many feared, with the fall in the pound since the Brexit vote boosting exports.

Delivering a warning that ‘the Brexit process might be bumpy’, he added: ‘In terms of overall economic growth, the consumer slowdown is likely to be roughly balanced by a sharp export pick-up and a modest recovery in business investment.’