Deputy governor of the Bank of England Ben Broadbent says more rate rises are on the way

Deputy governor of the Bank of England said that more rate rises are on the cards.

The bank increased its base rate for the first time in 10 years yesterday and upgraded its forecast for UK GDP in 2017.

Read more: The pound is still wobbly after yesterday’s interest rate hike

Broadbent has said this morning that more interest rate increases will be required to keep inflation in check.

Speaking on the BBC’s Today Programme Broadbent said: “We have said that given all the other things we assume in our forecast, many of which will be misses – there’s always unknown things and unpredictable things happening – but given our outlook currently, we anticipate we’ll need maybe a couple more rate rises to get inflation back on track while at the same time supporting the economy.

“This is not a promise and it never could be a promise and that’s not what the governor said yesterday either.”

Inflation is expected to peak at 3.2 per cent in October. It has been rising due to a fall in the value of the pound following the Brexit vote and a more recent rise in oil prices.

Two members of the central bank’s monetary policy committee, Sir Jon Cunliffe and Sir Dave Ramsden, did not back an increase in rates, citing slow wage growth as a problem.