Ruth Gregory – Capital Economics, deputy chief UK economist
Vote: Raise 25 basis points
Gregory said the risk of price pressures becoming embedded in the UK economy had increased even if it was “too early” for effects to appear. This comes as energy prices continued to rise, the labour market was recovering, and inflation was on course to rise
She said a 25 basis point hike in interest rates was “warranted” in order to defend the economy against risks emerging.
She also expected the Bank of England to raise rates “by only a further 25bps after this meeting, taking Bank Rate to 4.25 per cent”, which would be below the five per cent rate priced in by investors.