Andrew Sentance: interest rates must rise

Inflation – the cost of living – is the number one issue in Britain today. It is under-discussed in the House of Commons as MPs have no say in it: the task of controlling inflation lies with Mervyn King and his nine-strong Monetary Policy Committee, and its members are rarely interviewed. Little wonder, as a lot of them should be feeling fairly sheepish. But not Andrew Sentance.

He’s been arguing for a rate rise for months, and doesn’t have long left to serve on the MPC, so he can speak quite freely. Inflation has been above target almost all the time he’s been on the MPC, he says, so in what way can it be described as a blip?

“I still think it would possible to have a gradual rise in interest rates, but I think the longer it’s left the greater the risk that we end up with sharp rises, as the MPC discover that medium term inflation is higher than they thought.