MPC member in possible hint at higher rate

A member of the Bank of England's monetary policy committee (MPC) has hinted that the body should not be planning to cut rates any time soon.

Speaking on the issue of inflation at a pensions conference in Windsor, Tim Sentence said the decisions taken by the MPC would "need to reflect the emerging evidence on inflation expectations", which he said could include some upward pressures.

Wage inflation was one of the potential dangers that may emerge in the UK economy, he noted.

In addition to this, he said: "Inflation is being pushed up in the short term, and it will take some time to get it back under control."

Such comments may indicate that Mr Sentence is not keen to support rate cuts and may vote for rate rises.

This may dampen the prospects for a cut in the cost of mortgages, which may prompt some to seek a home via the self build method rather than buying.

Following the news yesterday that consumer prices index inflation has risen to 3.8 per cent, economist Alan Clarke of BNP Paribas told the Guardian: "The question of whether the MPC will hike interest rates is very much back on the agenda."