Rate rises ‘unlikely to halt inflation’

THE boss of a major private landlord has called for the Bank of England to consider different ways to tackle soaring inflation besides hiking interest rates.

Helen Gordon, chief executive of FTSE250 company Grainger, said the ‘key drivers’ of the inflation hitting the UK were the rising prices of essentials such as energy and raw materials as the global economy emerged from the pandemic. She said these factors were ‘an external shock emanating from abroad rather than an overheating UK economy’.

‘It is hard to see how raising interest rates will help control this,’ she added. ‘There are many levers beyond the blunt tool of interest rates that could be considered.’

Gordon often sits on the Residential Property Forum of experts which advises the Bank of England’s Financial Policy Committee.

Others have made similar calls. In March, GMB union leader Gary Smith said rate hikes risked ‘firing the starting gun’ on a recession.