BoE’s Saunders says interest rates may rise next year

“As to when I think interest rates might rise, that would depend on the economic outlook,” Saunders told an online event hosted by accountancy software company Intuit.

LONDON: The Bank of England (BoE) may need to raise interest rates next year if growth continues and inflation becomes stickier, BoE policymaker Michael Saunders said yesterday.

Saunders, who last month voted for an early stop to the BoE’s £895bil (US$1.24 trillion or RM5.15 trillion) bond-buying stimulus plan, repeated his view that continued purchases risked increasing medium-term inflation expectations.