Comments from Bank of England's Kristen Forbes via Reuters:

  • Says interest rates will need to be raised "well before" inflation hits 2 pct target
  • Waiting too long to raise rates would risk undermining economic recovery
  • China yuan devaluation means "bit more time before inflationary pressures build in the UK"
  • Right time to raise rates depends on more evidence of inflation heading towards target

Reuters with the headlines, nothing further at this stage

More here at the UK Telegraph, in a piece written by Forbes:

  • A solid recovery is finally here
  • Increasing interest rates prematurely could moderate companies' willingness to invest and consumers' willingness to spend
  • But unfortunately monetary policy works with lags
  • "Maintaining interest rates at the current low levels during an expansion risks creating distortions. Therefore, interest rates will need to be increased well before inflation hits our 2pc 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."
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Kristin Forbes is an economist. She is an external member of the Monetary Policy Committee of the Bank of England.