BoE chief economist: Rates to rise despite weak recovery

Dale Spencer, chief economist at the Bank of England, said interest rates in the UK should rise even though the economic recovery has failed to take hold, according to the Financial Times.

In an interview with the FT, Spencer said he was more concerned by rampant inflation than persistently weak growth figures which show the recovery is still under threat. He said: “I am not at all confident that the recovery has taken hold and will definitely power away. “However, I am even more worried about what is going on in terms of inflation.” Dale's comments came following the latest round of inflation data which showed the Consumer Prices Index (CPI) inflation level had climbed to 4.5%, its highest level since September 2008.