Despite inflation sitting at 0%, the Bank of England could be about to raise interest rates to a targeted 2%.
Interest rates currently stand at a record low 0.5%, and while borrowing rates are usually reduced in such circumstances, the Bank of England have indicated there could be a steady increase over the next few years.
The Financial Times have collected the opinions of a number of members of the Monetary Policy Committee regarding when these increases may begin.
Due to wage increases and strong indication from the labour market, Martin Weale is backing a rate rise. The decrease in inflation had deterred many from voting for a rate increase however now could be the right time.
Andy Haladane is the Bank of England’s chief economist, and says that the chances of rates falling are the same as they are increasing. Haladane believes that any rises could worsen the economic situation and that it is better to be cautious.
To read more opinion on the interest rates rise, the Financial Times has an excellent summary here.