Signs of accelerating wage growth have convinced a deputy governor of the Bank of England that swifter rises in interest rates are needed.
The change of heart for Sir Dave Ramsden, until now one of the doves on the Bank’s monetary policy committee (MPC), will add to a growing conviction in the City that a further increase to 0.75% is coming in May.
The former Treasury mandarin, the newest addition to the Bank’s nine-strong MPC, was one of only two members to vote against November’s rise — the first in more than a decade.
Ramsden told The Sunday Times: “There does seem to me more impetus on wages. We all will keep a close eye on what happens through the early part of this year…