Bank of England member warns of low interest rates risk

A rate increase took between one and two years to take full effect, the Monetary Policy Committee member said. As a result, rates would need to rise "well before" inflation hit the Bank's 2% target, she said. Her comments, in a column in The Telegraph, suggest interest rates could rise sooner than currently expected. "Waiting too long would risk undermining the recovery - especially if interest rates then need to be increased faster than the gradual path which we expect," she warned. Forbes, who joined the nine-strong MPC committee responsible for setting interest rates in July ...