Bank of England predicted to raise interest rates one more time in May

Increase to 4.5% will be last rise in current cycle, says former rate-setter Michael Saunders

The Bank of England is likely to increase interest rates one more time in May, to 4.5%, before inflation falls “sharply” over the rest of the year, a former rate-setter has predicted.

Michael Saunders, who was a member of the monetary policy committee until August, said the UK was nearly at a “turning point” for interest rates, which have risen sharply over the past year as policymakers tried to curb a surge in prices caused by a spike in energy costs.