The strength of the global economy and signs of a pick-up in wage growth in Britain have bolstered the case for higher interest rates, a policymaker at the Bank of England has said.
Gertjan Vlieghe, a member of the Bank’s rate-setting monetary policy committee, said there was “increased evidence that tight labour markets are finally starting to have some upward effect on wages”.
Mr Vlieghe, a former economist for Brevan Howard, the hedge fund, added that the rapid growth in consumer debt also showed that households were willing to borrow and spend, rather than cut back on debt, suggesting that the economy was “ready for somewhat higher interest rates.”
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