Timing of UK rate hike sparks debate

The Bank of England’s plan to increase interest rates gradually may mean it should move earlier than would otherwise be the case, a top policymaker at the central bank said.

However, the bank’s deputy governor, Charlie Bean, also told BBC radio there was no need for an immediate rate rise and policymakers had to be careful not to “nip” the economic recovery too soon.

The bank has held its bank rate at a record low of 0.5% for more than five years to help Britain’s economy recover from a deep recession caused by the financial crisis.