‘s panel who voted for a 0.25 percentage point rise included former MPC member Charles Goodhart.: “Although the headline figure for inflation was reasonably encouraging, core inflation did not budge. The combination of that, together with the disturbing data for wages implies that there will now, almost certainly, be a 0.25 point rise.”
“Inflation is a problem embedded into the UK economy so I suspect we’ll see another quarter point rise, but I think we just have to see how it plays out after that.” But Dr Jones said 6 per cent rates would be “brutal” for households, including the impact it has on the mortgage market.have a major impact on the mortgage deals offered by lendersSome, including Dr Jones, have suggested a pause after an increase next month because higher interest rates can take a while to take effect.
Despite this, some think there should be a higher rise including former MPC member Willem Buiter. He told“This inflation surge is now more than two years old and a decisive further tightening of monetary policy [in this case a rise of 0.5 points] is required,” he said. He added: “The GDP figures are fairly robust, so higher rates – although they may lead to a small downturn – will not lead to a deep, deep recession.”Michael Saunders, former external member of the MPC from 2016 until 2022 and senior economic adviser at consultancy Oxford Economics.