Interest rates will need to rise again, warns Bank of England rate-setter

MPC’s Catherine Mann says high rates necessary to stop inflation becoming embedded in wages and prices

Interest rates will need to rise again to prevent inflation becoming a persistent problem in the UK, a Bank of England policymaker has warned.

A shortage of workers and high wage demands were likely to continue pushing up inflation, acting as a counterweight to falling energy prices, said Catherine Mann, a member of the Bank’s monetary policy committee (MPC), which sets the base rate.