Bank of England rate hike ‘sooner rather than later’

Bank of England policymaker Kristin Forbes said yesterday that a slowdown in China and other emerging markets should not block a long-awaited British interest rate hike, which she said should come “sooner rather than later”.

Forbes, who is seen as a likely early advocate for a Bank of England rate hike, said Britain had limited direct exposure to the problems seen so far in developing nations, even taking into account how they might hit key trading partners such as Germany. Furthermore, Britain’s domestically driven growth would continue, albeit more slowly.

“As a result, despite the doom and gloom sentiment, the news on the international economy has not caused me to adjust my prior expectations that the next move in UK interest rates will be up and that it will occur sooner rather than later,” she said in a speech to business leaders in Brighton.