‘No rapid rise in interest rate’

Bank of England Monetary Policy Committee member David Miles said that a rapid rise in interest rates before unemployment had fallen meaningfully would damage Britain’s economy.

“What we’re going to do is not to increase interest rates ... as soon as we get a little bit of good news on the economy, such as we’ve had over the last six months, because I think that would be a pretty catastrophic strategy,” Mr Miles said yesterday.

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Miles also said the storm which caused widespread disruption and claimed lives in southern England earlier yesterday would have some impact on fourth-quarter economic output, but would probably be no more than “a tiny blip”.