Interest rates warning after Bank of England cut as expert points out 'problem next year'
manchestereveningnews.co.ukA member of the Bank of England committee that sets interest rates has warned against the UK being "seduced" into believing that inflation will remain low in the coming year.
Despite the main measure of inflation falling to the Bank's 2 per cent target earlier this year, Catherine Mann, an external member of the Bank's Monetary Policy Committee (MPC), expressed concerns about a potential rise in inflation.
In an interview with the Financial Times, she highlighted survey data suggesting that companies are planning to raise wages and prices.
She said that indicates that she and other rate setters are "looking at a problem for next year". READ MORE: Highly contagious childhood disease sweeps UK leaving nurseries 'empty' and parents in 'crisis' The Bank reduced the base interest rate to 5 per cent at the beginning of August, following a year of high rates aimed at controlling inflation.
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