BOE's Saunders warns of 1st UK rate rise in decade

London

TEN years since the Bank of England (BOE) last raised interest rates, policymakers are warning Britons to prepare for the next one.

"Our foot is pretty much on the floor with the accelerator," Michael Saunders, a member of the rate-setting Monetary Policy Committee (MPC), told The Guardian in an interview published late on Tuesday. "Households should prepare for interest rates to go higher at some point." The comments came on the same day that the central bank told lenders to prove that they're not underestimating the risks of rapidly growing consumer credit given the current "benign economic environment".