Britain's interest rates will rocket to a "new normal" of 3%
"An increase in interest rates is generally believed to take somewhere from one to two years to have its maximum impact. Maintaining interest rates at the current low levels during an expansion risks creating distortions," said Forbes, a member of the 9-strong rate setting Monetary Policy Committee, in a column for the Telegraph newspaper.
"Therefore, interest rates will need to be increased well before inflation hits our 2% target. Waiting too long would risk undermining the recovery - especially if interest rates then need to be increased faster than the gradual path which we expect. But with inflation starting from about zero today, there is no need to act before we are confident that inflation is heading back toward 2% within about two years as expected."
At the beginning of August, only one member of the MPC voted to increase interest rates to 0.75%. The remaining eight members of the MPC voted to hold the BoE's benchmark interest rate at 0.5%.