According to the Telegraph newspaper, Bank of England politician Michael Saunders suggested everyone prepare for an earlier increase in interest rates than planned due to rising inflationary pressures in the British economy.

Saunders said investors were right to bet on a faster increase in borrowing costs, given that consumer price inflation will exceed 4%, indicating that the Bank of England may become the first major central bank to raise rates after the pandemic.

In September, the nine-member monetary policy committee voted unanimously to keep the rate at 0.1%.

However, Saunders and Deputy Governor Dave Ramsden voted for early termination of purchases of government bonds by the Bank of England.

Michael Saunders noted that the markets have fully taken into account the price of the UK central bank's February rate hike and half of the December increase in borrowing costs.

Saunders' comments came shortly after the governor of the Bank of England, Andrew Bailey, said that inflation exceeding the central bank's target of 2.0% is worrying and that it needs to be controlled to prevent inflationary pressures from consolidating above this indicator.

According to Andrew Bailey, the Bank has a very difficult and delicate job ahead of it in order to finally prevent inflation from consolidating above 2%.