Jonathan Haskel, a member of the Monetary Policy Committee at the Bank of England, said on Monday that the Bank of England will likely have to hike interest rates more than once from their current 4.5 percent to combat the surging costs.
“My own view is that it's important we continue to lean against the risks of inflation momentum, and therefore that further increases in interest rates cannot be ruled out,” Haskel wrote in The Scotsman.
“As difficult as our current circumstances are, embedded inflation would be worse,” he added.
According to Reuters's survey of experts, the Bank of England will likely boost its benchmark interest rate to 4.75 percent in the coming week. Against the backdrop of the British central bank's efforts to counteract the rapid expansion of inflation, financial market predictions point to the level of interest rates reaching 5.5% by the end of the year.
In a speech given in Washington on May 25, just after official data showed consumer price inflation declined less than predicted in April, Haskel made similar remarks on the need to fight inflation.
“We are monitoring indicators of inflation momentum and persistence closely,” Jonathan Haskel said on Monday.
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