Interest rates will have to rise earlier and more sharply than expected to keep inflation under control, warn two former Bank of England policymakers.
Sir John Gieve, an ex-deputy Governor, and Charles Goodhart, a previous member of the Monetary Policy Committee, are the most senior economists yet to have opposed the current orthodoxy that rates will stay low for a prolonged period. The warning, the Telegraph reports, will come as a relief to savers but as a shock to homeowners, many of whom are able to meet their mortgage repayments only because of record low rates of 0.5%. Addressing Fathom Financial Consulting's Monetary Policy Forum, Sir John said: "I am expecting a recovery - when that is strongly established I'd expect rates t...
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