Bank of England Deputy Governor Sarah Breeden warned of the threat to the economy posed by leaving interest rates higher for too long, as differences in views at the central bank were further exposed on Tuesday.
Breeden said that efforts to stamp out a fresh spike in inflation by holding borrowing costs in restrictive territory comes with risks in the other direction. She played down a number of factors that might keep price gains elevated, including from a recent rise in rising household inflation expectations, although gave no view on whether a cut was needed at the bank’s next meeting in November.